Calculating the risks

It is still difficult at this point to say whether the government will go ahead with the implementation of the currency board system. So far, the government has allowed the public debate on the system's merits to develop. This is positive since an open debate can occur between supporters and opponents of the system. At the same time, Steve Hanke, the system's architect, continues to elucidate the concept's merits to various parties.

For the government, the policy options and the time available to solve the current crisis are limited indeed, especially considering the growing opposition among international institutions against the establishment of such a currency board system. The question in this regard is not whether we should bow to such pressures, but if we are ready to shoulder the consequences and risks involved in the event we do adopt the board system.

If we are indeed ready, a clear explanation must be given to the public of whatever scenario is planned to deal with those risks. Clearly, the public has the right to know what options are open before any new concept is implemented.

Only by such a clear explanation can the public be convinced that the option chosen is indeed the best there is for us to attain the higher goal we are striving for. The public's support will be easier to ensure when people recognize the problems that they are faced with. This is important, since whatever the monetary policy that is adopted, the support of the public -- or in a narrower scope, that of the market -- is decisive.

-- Republika, Jakarta