Concrete measures awaited

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