Moerdiono says no new economic polices

JAKARTA (JP): The government is not planning to issue any new policies in the near future despite the continuing fall of the rupiah.

Minister/State Secretary Moerdiono said yesterday that it is more important to remain vigilant and make a concerted national effort to pull the country out of its current economic woes.

"We aren't looking or thinking of issuing new policies in the economic sector in the near future," Moerdiono told reporters after addressing a seminar on Economic Reforms and the Prospects for the Business Sector in 1998.

The government last announced a significant policy change when it issued a set of economic reforms in November following the decision to seek monetary assistance from the International Monetary Fund (IMF) due to the declining value of the rupiah against the U.S. dollar.

During his address, Moerdiono admitted that tough times were ahead. He said the long dry season and the demands of Christmas, New Year and the Moslem fasting month Ramadhan which fell in succession helped exasperate the situation further.

"Several companies have even asked permission to dismiss their workers," he said referring to the dire economic situation.

Moerdiono said the government would continue to solicit and listen to suggestions from all parties to resolve the economic turmoil.

He even went so far as to say that the government "should not discount the possibility of error, weakness or even neglect in formulating policies".

"We should never hesitate to be flexible in judging an issue or formulating steps we have to take in the coming years," he said. "In the end, we are only human."

But Moerdiono was quick to point out that many factors were beyond the realm of the government and therefore public participation, particularly in the business sector, is essential.

According to Moerdiono, among the fundamental challenges facing the nation are workers' wages and bureaucratic inefficiencies.

Moerdiono said demands for increased wages was something the country could not avoid.

"It's quite clear that it would be inappropriate if we relied on low workers' wages as a basis for the competitiveness of our export commodities," he said.

"We have to believe that only a prosperous worker, with high expertise, skills and creativity, can be the mainstay of our competitive edge."

Turning his attention to the bureaucracy, Moerdiono said that President Soeharto has pointed to "the role of an inefficient government bureaucracy in contributing to a high cost economy".

"I believe this has long been a concern among us," he said warning that "inefficiency stemming from government bureaucracy can lessen our competitiveness in international trade."

Moerdiono said it could take up to two years before the situation bounces back, and much of it depends on the people's confidence in the economy.

"I want to stress the importance of trust. We need to unite, both the government and the private sector, to restore public trust," the state minister said.

In Semarang, Central Java, the assistant to the minister of national development planning Mubyarto said the government must show it is on the side of wong cilik, the common people.

Mubyarto, in charge of poverty eradication, said in the current economic crisis the government must not remain neutral but show that it is siding with those on the lower economic strata.

He argued that there was still an apparent lack of readiness by many government officials to help empower the people from the lower class. (prb/har/mds)