Habibie's strategy

Habibie's strategy

Recent disagreements on Habibie's suggestions have reached an
annoying stage. As an economist/sociologist, I can understand
both views. However, I'm not sure if lay Indonesians understand
the points. What I am sure of is every Indonesian agrees on the
role of Indonesian economists in achieving a sound economy. But
their disagreement to Habibie's hypotheses seems a little too
narrow. Have significant successes in economic development been
thoroughly analyzed?

Overall, consumer behavior has changed dynamically. Naturally,
the social structure of Indonesian society has become more
complex than three decades ago. In short, it is no longer cateris
paribus as most economists would have assumed in their
mathematical analyses.

On the issue of interest rates, most agree interest rates in
Indonesia are significantly high. With the improved capacity of
Indonesians to purchase products, this condition might have
adverse effects on the economy. To illustrate, about half the
amount paid on total loans for property and goods could comprise
interest pending alone. Even if consumers pay cash, many
providers pass on their own responsibility to pay interest.
Pathetic, is it not?

I suggest the Indonesian economists join together and analyze
the costs and benefits of Habibie's "zigzag" strategy, vis-a-vis
changes in socio-economic structure. How will this strategy work?
Under what assumptions? I am sure these questions have reasonable
answers, and there is some merit in it.

Please, give "Habibienomics" a chance to work.

SRI PAMOEDJO RAHARDJO

Jakarta