Challenges facing the govt

Challenges facing the govt

The challenges currently facing the government are numerous,
especially in convincing the critics that the government
privatization program of state-owned enterprises to balance the
budget is on the right track and does not smack of collusion or
corrupt practices.

To balance the state budget, the government has been forced to
raise fuel prices, electricity and telephone rates, which has
been sharply criticized by opposition ranks and university
students as putting a heavy burden on the poor segments of the
population. It has to resort to these unpopular measures due to
the legacy of misappropriation of state funds by former
administrations.

The International Monetary Fund (IMF) has called for such
stringent measures, too, since Indonesia is still depending on
foreign assistance to overcome its prolonged economic crisis.

The government's official view is that ownership of
state enterprises, such as cement and car factories, may
be given up if they are not profitable and instead
be replaced with a lesser degree of ownership or smaller
number of shares in the companies, if it will help
ease pressure on the state budget.

Regretfully, this policy is not fully understood by
the "nationalist" commentators, who still think that
Indonesia should have ownership of state enterprises
even though they are putting added pressure on the state budget
rather than selling parts of them to acquire cash. It must be
admitted that the government's efforts in public relations
in this respect have been very poor. The harsh measures taken
must be repeatedly and tirelessly explained to the public.

Whoever leads this sprawling archipelagic republic with a
population of over 200 million, with its numerous ethnic
diversities, will conclude that this nation is difficult to
govern and make its people content.

The forecast for 2002 is that the general public will continue
to express their discontent about rising prices and slow economic
growth. Yet, one heartening thing is that the rupiah's rate to
the U.S. dollar remains relatively stable at Rp 10,000.

What is important is that international trust and confidence
in Indonesia's economic potential and the Cabinet's leading
personalities has remained relatively high.

GANDHI SUKARDI

Jakarta