Thu, 05 Mar 1998

Effective and efficient

I am extremely concerned about the monetary upheavals and the economic crisis. Trillions rupiah from oil and gas, general mining, energy, forestry, estate crops, agriculture, taxes and foreign loans seem to have entered into chaos.

On the one hand, the man on the street and students were told for many years to save money. The value of their savings has strongly declined now and the interest on their savings is taxed.

On the other hand, a few people, by speculating with the money deposited by the general public, by share trading, and with the acquisition of foreign loans, could instantly book huge profits by buying and selling U.S. dollars. Their astronomical gains are not subject to tax.

When those people bought dollars in July 1997 the prevalent rate of exchange was Rp 2,400 against the dollar. Later, when the rupiah had a free fall beyond Rp 10,000 to the dollar, they exchanged their dollars. It was reported that they made the contribution because they loved the rupiah. They should have sold their dollars against a rate of Rp 2,400 if they really loved the rupiah. They were proud of their contribution.

The present condition is a very big challenge for the next president and vice president. I would like to make the following proposals with regard to the next cabinet.

1. The vice president's main duty should be to cooperate with foreign countries in technology and industry as a preparation toward globalization.

2. Coordinating ministers and state ministers should be dispensed with. They would be part of the pertaining ministries.

3. The National Development Planning Board must be changed into a national development planning and evaluation board. It should be led by the president himself. Emil Salim is perhaps the right choice for the board's chairmanship.

4. Supervisory agencies of inspectorates, state-owned companies, the Development Finance Comptroller, etc., should be the sole responsibility of the Supreme Audit Agency in line with the Constitution.

5. State-owned companies which have been mushrooming over the years and which are neither effective nor efficient must be dissolved or merged. Thus, there would be no more regulation that every ministry must have a state-owned company bureau if there are only eight state-owned companies.

6. A number of ministries should be joined, e.g. the manpower ministry and the ministry of education and culture; the religion ministry and the social ministry; the public works ministry and the home ministry; the ministries of agriculture, plantations and forestry, and so on.

BACHRAWI SANUSI

Jakarta