Crisis ends if nationalism rises

There has been plenty of educated, serious comments on the current crisis in these letters and the issues are already clear. My input in the dialog is restricted to observing some of the most outstandingly ludicrous input from various people in power, worldwide.

For example, the proven draft dodger Clinton, now facing a criminal charge of an odious sexual offense (not just sexual harassment) is reported to have called the President of this country from Air Force One and spent 25 minutes telling him he must follow the IMF conditions.

Shortly after, we had the hideous spectacle of the "managing director" of the IMF (in other words an employee only, who can be quickly replaced) standing, arms folded, in front of the President as if to say "sign this, you have no choice, and everything will be all right".

As a guest of this country I may not comment on the political issue, except to remind those, who say otherwise, that the maelstrom did not originate from the current government. It has been forbidden for some years now to borrow from offshore or external sources. But the consequences of "crony capitalism" and "laissez-faire" so common here have resulted in the private sector dollar debt dwarfing the government borrowing.

The inevitable result is that in the space of a few months, there is no longer a rating for Indonesia, so we have a position where sourcing new capital for a government project will be impossible. There is not a "sovereign guarantee" as previously, where this country always paid its debts on time. The U.S. Congress, and rightly so, object strongly to their money being used to bail out irresponsible private sector bandits, throughout Asia -- they want to help governments and thereby countries, to get back on track and remain a lucrative source for U.S. exports.

Therefore, as this week's particular issue that causes the rupiah to sink to fantasy depths is said to be "private sector borrowing", Indonesia has little choice but to say what it should have said on Oct. 31, 1997, when it first had an "offer" from the IMF -- state clearly that the government of Indonesia will not, under any circumstances, enter into a dialog to assist corporate Indonesia with their massive debt problem.

Easy for me to say, but isn't it exactly what the "market" (whatever that is) wants to hear, and isn't it infinitely preferable to the straight out of Disneyland condition of the IMF that all subsidies on gasoline, sugar, rice, etc. are gradually removed. In a country where 80 percent of the people have no money at all, this condition/proposal is so unreal it is unworthy of comment.

How do you move toward stability of the rupiah, thence, per se, the backbone of the country? First of all, take immediate action, whatever is decided by the collective wisdom of the current leadership -- act, do not prevaricate.

Second, ban all internal transaction in dollars -- some examples: hotel room rates, apartment purchases, rental of space in malls, whatever, and rapidly revoke the operating licenses of those who even quote a customer in U.S. dollars, and not rupiah, the national currency.

Third, announce immediate moratorium on all new projects whatever the sector, because "project" means further borrowing.

Fourth, widen drastically the bank or money changer band between buying and selling, so that whatever the daily rate, speculators can no longer profit from day to day.

Fifth, the government should totally distance itself from the private sector in terms of their debt, and at the same time deregulate to the maximum to assist private sector companies to operate without restrictions.

People power and nationalism will release this country from the nightmare but only if you all, whether poor, rich, or in the middle, pull together.

BILL GUERIN

Jakart