Changing our lifestyle

Changing our lifestyle

The core of Indonesia's foreign debt problem is in reality not so different from that which affects debtor-creditor relations in general. The creditors (donor countries) begin by considering a number of aspects related to the debtor (receiving countries), such as the character of its government, its ability to pay back the loans, the condition of its economy, the collateral (if any) it can provide and the nation's credibility.

It appears that in the case of Indonesia, donor countries will focus their attention on the government's character, the country's economic prospects and the nation's credibility. At the very least, those donors will be measuring our capability to create a system of government that is free of corruption, collusion and nepotism.

It is important that this is fully realized by our government officials, from those in the highest echelons to the lowest. The reason is that a system of government that is free of such negative elements will be able to at least induce a certain degree of credibility with regard to the management of the state finances. This, in turn, could mean a speedier economic recovery.

Apart from state management, another major factor that needs our attention is the immediate restoration of this nation's good image in the eyes of foreigners. The looting and riots which have occurred in several towns and cities lately are dark stains on our national record which are not easily erased. Do we really lack the ability to resolve these cases once and for all so that our national credibility can be restored?

Not one donor country at present will be willing to take pity on us and our current condition. They will let themselves be guided primarily by economic and rational calculations in considering any possible restructuring of our foreign debts.

For that reason, there is no other way we can persuade them to lower our debts or grant us any other facilities to help us lighten our debt burden. What we need to realize most of all is that we must start making frugal living a part of our lifestyle so that we may extricate ourselves from the grip of our already colossal foreign debt burden.

-- Bisnis Indonesia, Jakarta