Lack of trust worsens economic crisis

Lack of trust worsens economic crisis

By Asip Agus Hasani

YOGYAKARTA (JP): Many people have questioned why the
Indonesian rupiah continues to wane against the U.S. dollar
although the government has assured it is pursuing the
appropriate economic policies.

But political observer and University of Gadjah Mada
sociologist Loekman Soetrisno maintains that the current crisis
is not merely a question of economics but also a matter of
political trust.

In an interview with The Jakarta Post, Soetrisno underlines
the need for the government to regain people's trust by tough
political action.

Question: What will happen if the current crisis doesn't
subside soon?

Answerb: We'll go through a recession. Just imagine for a
minute, that right now in the mid of a monetary crisis we are
seeing mass layoffs and thousands of Indonesian workers abroad
are returning home. The rain we expected to come has not, so
farmers cannot cultivate their land.

We are looking at mass layoffs while prices keep soaring.

Just think of what those people are going to do. When it comes
to that, when we're talking about the need to fill stomachs,
people will do anything, including steal.

Q: But aren't our economic fundamentals sound enough?

A: It's completely untrue when people say we can easily face
this. We should realize that we're much worse than Malaysia.

Why? Because apparently our economic fundamentals aren't as
sound as we thought.

Q: Are you optimistic the government can resolve this crisis?

A: They can't resolve it, because both at home and abroad people
no longer trust the government.

What are we to do? The rupiah is over Rp 6,000 (against the
U.S. dollar), even with Pak Harto looking healthy.

Q: If the core of the crisis is no longer a monetary one but a
question of trust, what should the government do?

A: The government should adopt a new strategy to regain that
trust. It should change its strategy in facing the people.

The government should be willing to release Sri Bintang
Pamungkas. Why is he being charged when he didn't do anything?

We cannot let the government continuously violate human
rights. Let (labor leader) Muchtar Pakpahan go. Let the PRD
activists free.

Why is the government doing this if it is just wasting time,
money and impairing the image of our nation?

Acknowledge Megawati Soekarnoputri as the chairperson of PDI,
don't keep on hounding her.

If the government does all these things, then they can regain
trust at home and abroad.

What we need now is national harmony. Don't believe that those
things can merely be discarded. This is a question of trust. It
isn't going to be remedied by intervention from Bank Indonesia.

Q: But the government has mentioned some people who could incite
instability...

A: The government should stop inferring that some groups have a
bad intent toward the nation. The government should stop looking
for a scapegoat.

It is the government themselves who are at fault for
improperly managing this country.

Q: What else should be done?

A: The second step is for the government to apologize to the
Indonesian people, for making them poorer in this crisis.

Just look at the others. (Malaysian Prime Minister) Mahathir
apologized, but our government has never apologized while its
clear that we are now all taking a step backward. The number of
poor is increasing.

Q: What about efforts to eradicate corruption and collusion?

A: As long as Indonesians define themselves as culturally
different from others (foreigners) then corruption will persist.

Corruption has become part of the culture. So if you want to
wipe it out, it must start from above.

These things are old stories playing over and over again like
a broken record, and many of us are already sick of talking about
it. We can shout about it as much as we want but nothing changes.

What would happen if things just burst through suddenly? As a
sociologist, I'm quite fearful because even the government no
longer listens to peaceful grievances.

Q: What about the middle class? How will they react to this
crisis?

A: The point is that there is no such thing as a middle class in
Indonesia. What about the middle class?

Don't expect anything from the middle class in Indonesia.