Better law enforcement needed

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