Wed, 24 Dec 1997

Making a small step

If we look at this economic crisis, fundamentally it is about the rupiah's integrity as a currency. It only takes one rumor for the rupiah to take another dive. It is sitting on thin ice. Plainly said, people have lost their trust in the rupiah as a currency. Maybe it is a reflection of how the Indonesian people feel toward the government's handling of the situation.

Indonesians (especially urban dwellers) have lost their national pride in their country. Look around in any mall! Ninety- nine percent of the merchandise is imported. The food courts offer mostly hamburgers, steaks, etc. not to mention the cafes. The same goes for clothing, shoes, and a lot of other things.

Indonesia has become one big community of consumers rather than producers -- consumers of imported products or services.

Of course, if we not only want to survive this crisis but also want to succeed in the international market, we need to change this consumerism attitude to something more positive. We need to produce products and services that have a lot of added value. We should stop promoting low-paid labor to attract foreign investments and start a program in which we can promote skilled labor in the future. Boosting entrepreneurial skills and making something from nothing should be our aim rather than competing for lucrative government projects.

Of course, this cannot be done overnight. But something must be done to boost the strength of our rupiah. We could follow the Malaysian example by making all fees and services that are quoted in dollars, such as hotel rates and office rent, in rupiah -- no more prices in dollars. It would be a small step, but at least it would be a step forward.

BOB S. EFFENDI

Jakarta