Fri, 11 Sep 1998

Fat cats and starved kittens

For some time I have noticed that many newspapers have been deceptively referring to "the prolonged" economic crisis. As "prolonged" is used to talk about an event or situation which continues for a long time or for longer than expected, the implication is that the economy will improve in a short period of time. Nothing could be further from the truth.

It was therefore with some relief that I read your realistic, albeit depressing editorial A rude ILO awakening on Sept. 2. There is little evidence to believe that the worst is over or indeed, if the economy has even bottomed out. There is certainly no justification for officials to congratulate themselves for managing to get further loans from the international community as this is only plunging the country further into debt.

There seems to be a fundamental misunderstanding by the bureaucrats that the loans are to assist their businesses and bail out more banks. Presumably, these are the very same self- satisfied people who are still driven around in luxury cars with tinted-glass windows which enable them to hide the misery and despondency on the streets. I have even heard some of these people claim that beggars in Jakarta are organized by a syndicate in order to justify the reason why they never give anything. The government seems to have conveniently forgotten that the delays in disbursing the tranches were caused by the IMF's fear that the money would not reach its intended recipients.

However, I take my hat off to Governor Sutiyoso who has wisely chosen to allow cultivation on unused land in the city. It is time that other bureaucrats woke up to the fact that most of the manufacturing base is comatose and a "back to basics" approach is needed.

Rice is needed. This year's yield is pitiful and it will be necessary to import, but what of the future? Shouldn't the agriculture minister exercise vision and think in terms of subsidizing the farmers by purchasing high-yield fertilizers? Admittedly, Green Revolutions like the Philippines and Indian models have their drawbacks long term, but short term Indonesia desperately needs to produce a decent crop next year.

Let's face it, what do high interest rates mean to the average Indonesian worker when he is laid off with an empty, groaning stomach and an even slimmer chance of finding employment?

S. STEELE

Jakarta