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