Curbing inflation

The rate of inflation over the last couple of months has been a reason for great concern among many. For February alone, the rate was 12.76 percent, which brings the cumulative rate for the period January-February to almost 20 percent -- 19.64 percent to be precise.

If the inflation rate cannot be curbed, bank interest rates are certain to rise also. Such a condition would deliver a fresh blow to businesses. In the final analysis, therefore, a high inflation rate would help no one.

The key answer to this problem is to bring the rupiah exchange rate under control. For this reason we hope the government will move quickly in deciding what policies it prefers to take to restore this country's economy.

President Soeharto has already offered an IMF-Plus package. Emphasis under this concept is given to the recovery of the value of the rupiah to a reasonable level as the 50 points for reformation as agreed upon with the IMF do not explicitly mention contain policies that could raise the rupiah's exchange rate.

We hope the IMF and the government can reach a new agreement for the main purpose of stabilizing the rupiah at a reasonable level within a relatively short time.

-- Bisnis Indonesia, Jakarta