Legislator urges wthdrawal of $80b in overseas savings

JAKARTA (JP): House of Representatives legislator Theo Sambuaga called yesterday on Indonesians with savings abroad to withdraw their overseas funds to help domestic investment during the economic turmoil.

Theo said the funds, which he estimates at US$80 billion, could be disbursed to save national industries which were now on the brink of closure.

"Local industries must go on. Companies which must repay their due debts need a helping hand, because their bankruptcy will cause unemployment to skyrocket," Theo, who heads the Golkar faction, was quoted by Antara as saying.

He said unexpected massive lay-offs would weaken the people's purchasing power and increase social problems. It would also result in a decline in productivity and stagnant economic growth, Theo said.

Deputy chairman of the Federation of All Indonesia Trade Unions, Bomer Pasaribu, predicted that the economic crisis would force the lay-off of approximately 1.1 million workers in the formal business sector.

Indonesia has been affected by the monetary crisis for the last six months. Rumors of President Soeharto's ailing health added insult to injury last week, with the rupiah breaking a psychological mark of Rp 5,000 against the U.S. dollar.

Theo, who is also deputy secretary of dominant Golkar, warned the people against being incited by unfounded rumors disseminated by certain speculators.

"There is no reason to expect that monetary woes will lead to political disturbances. We, members of the Golkar faction in the House, will talk to people during our on-the-recess visits and try to ease them," Theo said.

The House is in recess for four weeks, starting from last Monday. The President's speech on the state budget plan on Jan. 6 next year will mark the resumption of the House sitting.

Theo said the Golkar legislators would prove to their constituents that the government had sought every avenue to resolve the crisis.

"The government is on the right track. Its decision to loosen fiscal and monetary policies must be sustained both in the short- term and in the long-term," he said.

He said the Golkar faction threw its weight behind the government's economic rescue program, saying that it would maintain public confidence.

He suggested that the government and the private sector join forces to face the financial market. (amd)