Market versus government

Market versus government

At a time when some political party members are fighting for positions and when some legislators are appealing that their Speaker Akbar Tandjung step down from his position, their constituents are facing price increases and scarcity of essential needs. All this shows the poor performance of the government and also the isolation of political affairs at the institutional level from the sufferings of the people, who were promised in the last general elections that their lot would be improved.

The steep rise in the prices of rice for the past week causes great alarm. One trigger is the harvest failures in several production centers. Another is the hike of electricity and telephone rates, soon to be followed by fuel prices.

The actual market situation seems to display a mismatch with what the government thinks and does. It is controlled by traders who look for profits and it contains speculators as well. This is evident with the price rise of daily necessities. In some areas the kerosene price has gone up by 50 percent to 70 percent. This commodity is scarce due to its muddled distribution. Today the price and availability of kerosene has become a complicated problem, adding difficulties to people's lives.

The market and its players always respond to information with high speed. Their deftness and astuteness is only heightened with current uncertainties while the government seems to be at a loss to find ways to improve the situation. Facing a market with such characteristics, nobody can win, not even the government, which is in a constant nervous state.

-- Ekonomi Neraca, Jakarta