Heading to new monetary crisis?

Heading to new monetary crisis?

From Kompas

The government is off limits while the Ministry of
Communications and Information, sending short messages to the
general public, is not logical either. One of the messages that
reached my cellular phone, which further emphasizes the rich-poor
dichotomy, reads: "Please help control subsidy distribution to
the poor".

Would it not be far more appropriate to control the flow of
bribes in the Supreme Court (MA), whose investigations are now in
doubt? While the fuel price hike was done in response to world
oil prices is legitimate, Indonesia's salary standards are not
rising in accordance. Prices of daily necessities and public
transportation fares are soaring, however.

The composite share price index indeed increases and the
rupiah strengthens, with an initial inflow of investments, but
the purchasing power of society declines. The real sector is
becoming stagnant and public confidence in the government is
dropping sharply. High inflation is followed by higher bank
interest rates; bringing no solution.

High interest rates even create a negative indicator as was
the case in the 1998 monetary crisis, when it reached almost 50
percent. Are we heading toward another monetary crisis of that
magnitude? Oil is getting scarce and liquefied petroleum gas is
trailing behind. The case of fuel-hoarding by officials from
state oil company Pertamina has never been properly investigated.

The authorities and people's representatives claiming to
strive for public interests should therefore buy daily needs in
traditional markets, travel by public transportation and make a
living by legitimate means. They must steer well clear of
corruption, bribery and amassing fuel stocks.

EMILIANA DEWI
Jakarta