Better law enforcement needed

In the wake of the May 14 riots in Jakarta and elsewhere, many Indonesian business people, especially those of Chinese descent, are reported to have fled abroad to find safety and conduct business.

Although Armed Forces Chief Gen. Wiranto and Jakarta's military commander, Maj. Gen. Sjafrie Sjamsoeddin, have stated their commitment to safeguard the public security and to take stern action against criminals, the entrepreneurs seem to remain reluctant to return to Indonesia. This means there is a need for the authorities to come up with a more concrete action plan for effective enforcement of the existing laws.

Another strategic factor that deserves to get the government's attention is the need for steadfast adherence to existing business arrangements. Businesspeople usually require certainty with respect to investment, trade, banking and other services. A ready example of inconsistency in such matters is the recent changes in bank capitalization and capital adequacy ratio (CAR) requirements, which have caused much confusion.

All this could give the impression that the government lacks the necessary firmness and consistency of action in its enforcement of the law. If this is allowed to go on unchecked, further erosion of confidence among both foreign and domestic businesspeople in this country could be the result.

It sad to see how Indonesia, which attained its freedom to become a sovereign state as far back as 1945, has now suddenly become a country whose economic decision-making is under the control of the International Monetary Fund, which has its head office in the United States.

-- Bisnis Indonesia, Jakarta