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