Concrete measures awaited

People are now waiting for concrete measures to be taken by the government, as promised by Finance Minister Mar'ie Muhammad after his recent "road show" to the United States. The fulfillment of this promise is of the greatest strategic importance amid our efforts to surmount the worsening crisis which is now affecting the exchange rate of the rupiah against the U.S. dollar.

The crisis of confidence which is now affecting the rupiah has its cause mainly in psychological and other noneconomic factors. As a consequence, the present fluctuations in the rate of the rupiah do not reflect the actual conditions that exist. A shift in value of more than 100 percent in so short a span (less than one month) can no longer be considered rational. Then, too, all kinds of rumors whose origins are uncertain have actually been able to shape a public opinion that has helped to aggravate the drop in the value of our national currency.

Finance Minister Mar'ie Muhammad should take concrete, transparent and calculated measures which must be implemented in a consistent manner. Monetary authorities must give their full attention to any capital outflows by, among other things, initiating a "one door" policy for all offshore commercial borrowing, both private and governmental. Any transfers of local funds to foreign countries should also be punctually monitored by the central bank in order to detect any capital flight to Singapore or other countries.

Obviously, what the public is now waiting for is concrete measures -- not merely lip service or clichd promises that could boomerang against the government amid the present erosion of public confidence. For the government, on the other hand, there is no reason to be ashamed to rectify old policies that are now recognized as being wrong. If necessary, the government might even apologize to the public for those mistakes.

In this way the public might develop a feeling of goodwill toward the government, and in the longer run this might nurture a greater feeling of confidence toward those who are now managing this country.

-- Bisnis Indonesia, Jakarta