Credibility on the decline

Credibility on the decline

After the objections that have been raised against government
regulation No.2/1998 (controlling freedom of expression) and a
second regulation governing the status of civil servants, yet
another problem has arisen, this time concerning a government
regulation on bank recapitalization.

There is no denying that the government's credibility is on
the decline. This is worrisome, as it indicates that the quality
of the management of our state administration system is
declining, which is causing the overhasty issuance of legal
items.

What considerations could have been behind the issuance of
this newest government regulation? This question is not easy to
answer. It could indeed be true (as the government has stated)
that Lippo Bank, one of the troubled private banks mentioned in
the document, is the most ready to meet the requirements set for
recapitalization by the state's central bank.

The problem is that Lippo is currently in a poor condition so
that the move easily invites suspicion. For one thing, present
Lippo shareholders will not be receiving any of the cash while
their positions will be diminished to that of minority
shareholders, with the government acquiring the majority of
shares.

We can only remind the government to be careful in its moves.
Such prudence is required under a democratic system of
government, or in a society which is striving to build one. The
process of decision making must be open and accountable.

-- Bisnis Indonesia, Jakarta