Indonesia's ailing economy

Indonesia's ailing economy

The Indonesian economy at present is seriously ailing, which can be seen from the high inflation rate and the US$7.9 billion current account deficit in the balance of payments. What causes this condition is, at present, the subject of much public debate. It has been discussed in a national working conference of the Indonesian Chamber of Commerce and Industry (Kadin) after it was disclosed by the chairman of the National Development Planning Agency, Ginanjar Kartasismita, that "viruses" were plaguing the national economy.

The viruses which Ginanjar spoke about represent perhaps the various causes of the present high inflation rate and the current account deficit, including the high-cost economy. This newspaper assumes the government has already made an inventory of the various viruses upsetting the national economy, because complaints have repeatedly been raised by economic observers as well as by banking circles.

The government has in fact already come up with various answers in the form of deregulation and debureaucratization packages, although with little effect.

This newspaper is optimistic -- provided that our high institutions of state are consistent in their efforts to uphold existing laws and regulations -- that those annoying viruses will eventually be wiped out because their strains are already known.

-- Sinar Pagi, Jakarta