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.