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