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