Crisis of confidence

Crisis of confidence

From Merdeka

When the exchange rate of the rupiah came close to Rp 4,000
per U.S. dollar, the print media published opinions expressed by
economic observers saying essentially that we could still afford
to laugh, but if the exchange rate remained near Rp 4,000, within
a few months the entire population would cry in anguish.

Prices of goods have soared, employment opportunities are
getting scarce, cases of employees being let go are occurring
everywhere and the crime rate is increasing.

Later the exchange rate of the U.S. dollar shot past the
psychological Rp 4,000 barrier and approached Rp 5,000. Few dared
to imagine what would happen next. Some experts were correct when
they said what was happening was not simply a monetary crisis and
that the crisis was only a consequence. The most critical thing
is that the country is being hit by a crisis of confidence.

A crisis of confidence cannot just suddenly appear. It was
going on unexposed before it was finally made manifest. The
factors that triggered this crisis of confidence were George
Soros, a regional repercussion, a fire razing building A of Bank
Indonesia, a rumor that President Soeharto was ill and so forth.

In the absence of a crisis of confidence, these factors would
only have a little influence. Problems caused by a monetary
crisis are relatively easy to solve. The intervention made by
Bank Indonesia and the Nov. 3 deregulatory policy, for example,
were quite effective. Things, however, are not any better.

The rupiah has depreciated by over 100 percent within a short
period of time. This depreciation is worse than the impact of the
most serious crisis in any other country. This is no longer a
monetary crisis!

It was indeed interesting to hear a statement by Mr. Rizal
Ramli, an economic observer, in the Fokus TV program aired by
Indosiar on Dec. 13, 1997. He said, "Experiences show that if a
crisis like this happens abroad, the only solution is the
replacement of the government..." How are things here?

The most important thing is that people's representatives in
the People's Consultative Assembly/House of Representatives, as a
result of the general election, should quickly read these
economic signs and take action before it is too late in order to
save this nation from total economic disintegration. If we don't
help ourselves, who will?

The people have lost faith in their officials due to a loss of
confidence. Saying that foreign investors will come here to
invest is only meant to comfort us. We are very close to the era
of globalization, an trade/economic era which will be marked by
stiff and merciless competition under the sweet term of "regional
cooperation".

Once we are crushed, we will be forever in that condition.
Then it will be too late to have regrets. No one will help us as
every nation will be too busy taking care of themselves so they
won't be crushed by others as well.

TP TANDANG

Bogor, West Java