Habibie outlines grim realities

JAKARTA (JP): President B.J. Habibie yesterday recognized that there was little the government could do to help reduce the unemployment rate, especially among the educated, which is expected to further swell in the months ahead.

Without giving specific numbers, Habibie said the government would not be able to provide adequate job opportunities as the country's economy contracted severely over the next few years.

"It means that there will be massive layoffs this year, and when the number is combined with current unemployment, the number will be extremely huge," the President said at the Bina Graha presidential office at the opening ceremony of a working meeting of Islamic university rectors.

Official records show that at least 15.4 million people are already unemployed.

Students not only face an uncertain future after finishing their studies, but many are experiencing difficulty just trying to continue their education as academic costs surge.

The government pledged to provide several scholarships despite its own severe budget constraints.

The President warned yesterday that unemployment would not only bring economic but also social and political consequences to the country.

"Unemployment is not only an economic symptom, but also a psychological symptom which brings implications to other sectors," Habibie cautioned.

Habibie, however, expressed hope that those with an education could create their own work rather than depending on the government.

"Their education background... must enable them to start their own businesses although they may have to start them from scratch," Habibie said. (prb)