Tue, 04 Nov 1997

Government told to be honest

JAKARTA (JP): More than ever before the government needs to be "honest and transparent" in order to avoid possible social unrest following the country's deepening economic woes, a cabinet minister said here yesterday.

State Minister of Environment Sarwono Kusumaatmadja when asked by journalists on the possibility of social unrest replied that such incidents could be avoided if the government shows it is honest, transparent and efficiently implementing sound policy.

"It (the government) needs to satisfy expectations... and show that those who are now suffering (from the economic situation) are not just the common people, but also the elites... whose companies have been inefficient and reckless," the outspoken minister said.

"Tough actions must and will be taken against them (problematic elites)... and the government will now be serious.

"How more serious can you get when it has just closed troubled banks... just look at who owns these banks," he told reporters yesterday after receiving his Dutch counterpart Ms. M. de Boer at his office.

Sarwono was referring to the liquidation of 16 banks, some of which belong to politically well-connected figures in the country.

Sarwono said the present situation could serve as a starting point to rid the country from the practices of "reckless businesses" applying the practices of "connection and collusion".

He also called on community leaders to have the maturity not to exploit sensitive SARA (ethnic, religious, racial, and societal groupings) issues during the current situation.

The Hong Kong-based Political and Economic Risk Consultancy (PERC) warned in a report released over the weekend that social unrest was likely to escalate in the months ahead.

According to PERC, the currency pressure, declining economic prosperity, drought and haze caused by forest fires, have all combined to create frustration.

Sarwono said: "We must unite and work in a concerted effort, suffer together... before we can sail out of the present gloomy situation. It may take three years."

"It's important for the government, non-governmental organizations and all levels of society to do the right thing," he remarked.

Speaking of the raging forest fires which have ignited large parts of Sumatra and Kalimantan, Sarwono said heavy punishment was in store for those found guilty of burning forests.

"President Soeharto has even let his presidential airplane to be used by police, prosecutors and military intelligence officers to inspect the situation in Riau some time ago. This means business," he said.

The police announced last week at least 30 companies -- including four foreign investment firms -- along with 24 people were suspects for burning forests.

Sarwono also refuted concerns that the government might slow down its steps to prosecute the forest burners when the fires dissipate or the monsoon comes. (aan)