Legislator urges wthdrawal of $80b in overseas savings

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)