Sat, 01 Nov 1997

Minority parties lament govt one-man-show

JAKARTA (JP): The minority United Development Party (PPP) and Indonesian Democratic Party (PDI) expressed disappointment yesterday over the government's one-man-show in the settlement of the ongoing economic turmoil.

Budi Hardjono, chairman of the PDI faction in the House of Representatives, told a press conference that the government had failed to consult the House about present and past measures taken so far.

"The government has belittled the House by skipping consultation procedures with us. We did not even know that the government had set up a team to negotiate financial aid with the International Monetary Fund.

"Not until President Soeharto's announcement in a meeting with the Indonesian Youth Committee in Surabaya a few days ago did we find out that Singapore had offered US$10 billion in aid," Budi complained.

He said the monetary woes that have prevailed in the country since late July were a serious problem, but the government failed to inform the House about how the recovery measures have proceeded.

"On the one hand, President Soeharto has encouraged the need for a better relationship among state top institutions to make the House on par with the government.

"But on the other hand, the government has met with big banks and the National Chamber of Commerce and Industry, and explained safety plans to other institutions here and abroad, but not to us," said Budi.

PPP secretary Bachtiar Chamsyah joined Budi in the criticism saying that the government should have contacted the House because the crisis affected the state budget.

"The House is assigned to control the implementation of the state budget and development program. How can we function if we don't know to what extent the monetary problem shakes our economic foundations?" Bachtiar asked.

Both the PPP and PDI have demanded the House leadership ask the government to explain its measures. The House decided yesterday the government would deliver its explanation in a hearing with Commission VIII on finance and state budget on Nov. 10.

Budi and Bachtiar said all the foreign aid commitments, which could exceed $30 billion if the IMF agreed to lend $15 billion, would be helpful to restore public trust in the rupiah. But they said the economic adversity would not be solved that easily.

"The government must be extra careful and improve efficiency and curb leakages while using the funds," Bachtiar said.

Budi warned the government of foreign debts which would soar to $140 billion, saying that it could create a dangerous situation to the country's economic well-being. (amd)