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