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