Economic reform drive needs reinvigorating
Economic reform drive needs reinvigorating
Prof. Sumitro Djojohadikusumo made some strong remarks
recently when he criticized the government for its lethargy in
bringing about economic reforms. The Indonesian economic guru
appeared impatient on observing the pressing problems that need
to be immediately addressed.
Prof. Sumitro's criticism has reinforced suspicions that
internal constraints are weakening the government's reform drive
despite the fact that the need for such measures has been
recognized by the authorities concerned. The professor pointed a
finger at vested interest groups which are inclined to preserve
the current situation so they can continue to gain and retain
their privileges.
The government, Prof. Sumitro said, must muster a strong
political will to combat those vested interest groups. Many
problems in the real sector still need to be tackled to expedite
the flow of goods, eradicate high cost economy conditions and
eliminate monopolies on certain commodities.
We support this view. While we do not wish to belittle the
advances and achievements that have been made so far, we also
cannot close our eyes to the various problems that are still
restraining the pace of our economic growth. The indicators are
there for all to see -- among them, threatening inflation and
overheating of the economy, a high current account deficit and a
weak competitive rating of our commodities.
The government has repeatedly stated its intention to launch a
deregulation packet. Initially it was scheduled to take place at
the beginning of June, but this was postponed. In the absence of
a clear-cut reformation framework, one can hardly blame those who
assert that the stated deregulation plan is no more than a
dressing to impress next month's CGI meeting.
Our economic affliction has meanwhile grown fairly chronic.
There is no need for us to condemn Prof. Sumitro's strong words.
To remain positive, we may take his statement as a warning that
immediate action should be taken, or the situation may become
worse.
-- Bisnis Indonesia, Jakarta