Monetary intelligence body

Monetary intelligence body

From Merdeka

The Institution of Strategic Studies for Nusantara Culture (LSSBN) is deeply concerned with the current monetary crisis experienced by Indonesia. So the institution fully supports the government's measure to liquidate 16 private banks in the effort to improve the banking condition in this country.

But it is regretful that the government did not take this action much earlier -- say two or three years ago -- when there were strong indications that many private banks were unhealthy. Why did the government wait until the IMF intervened in the country's monetary problems? This gives the impression that the government has had no vision concerning the national economic situation. Thus, the economic packages introduced by the government during the late 1980s and 1990s were virtually a failure. The government should learn from this failure and prudently study every deregulation it will introduce in the future so that it will not have a negative impact on the nation's economy.

After all, the private banks were almost invariably owned by economically strong groups or people. They should have been able to manage their banks properly and professionally.

Perhaps, it is high time the government considered the need for establishing a new institution, i.e. a monetary monitoring agency with the task of supervising and maintaining the stability of the rupiah, and preventing capital flight and money laundering, among other duties. Such an agency should cooperate with agencies such as the Armed Forces Intelligence Body, State Intelligence Coordinating Agency (BAKIN) and the Central Bank.

R.M. MUSTADJAB LATIP

Chairman of LSSBN