Political will key to economic reform: Analyst

JAKARTA (JP): Indonesia's economic turmoil may lead to a crisis of confidence if the public loses faith in the government's ability to carry out bold economic reforms.

Political analyst J. Kristiadi said only the will of the government could make a consistent and conscientious economic program which would allow the country's economy to bounce back.

"Despite the international rescue package, people have started to lose confidence because the government has not carried out its economic reforms from the heart," Kristiadi, a researcher at the Center for Strategic and International Studies, said over the weekend.

The rupiah continues to plunge drastically despite the announcement of a bailout package in November by the International Monetary Fund (IMF).

Rumors of President Soeharto's ailing health pushed the rupiah past the 5,000 mark against the dollar last week.

Kristiadi maintained that the people were starting to doubt the government's policy to stabilize the national economy because it lacked boldness and transparency.

The government closed 16 insolvent banks as part of the IMF economic rescue package early last month, but failed to, among other things, lift the National Logistic Agency's monopoly on wheat flour distribution for the next three to five years, or include the widely criticized Timor national car project in the list of rescheduled projects.

Kristiadi said the restarting of several major projects, which previously fell under the "review category", highlighted the government's inconsistency.

"The government should have given a clear sign of its determination because its economic reform has failed to stop public doubts from prevailing."

He urged the government to learn from the strict measures being taken by neighboring countries to tackle the monetary crisis.

Anxious

Former home affairs minister Rudini dismissed speculation that the economic turbulence would lead to a motion of no-confidence against the government.

Instead, certain groups should be blamed if the people cause disturbances or force a succession of the national leadership, he said.

"The public were anxious even before the currency turbulence hit the country because of unfair treatment by local government officials. But they don't know a lot about the economic crisis the country is now facing," Rudini, who chairs the Institute of Strategic Studies of Indonesia, said.

People suffering from unfairness and dire economics were the most vulnerable and easily provoked by a third party, he said.

"(The third party) will incite these people to achieve their objectives because they no longer find constitutional mechanisms feasible."

Rudini urged government officials to be aware of how the public perceived their conduct and listen more to demands from the grass roots.

And the government should not be held singularly responsible for the economic upheaval, he added.

"The government should not apologize for the crisis. The most important thing is how to ease the people's disenchantment as quickly as possible."

Commenting on the possibility of national leadership succession, Rudini said that the People's Consultative Assembly should pick candidates other than the incumbent President Soeharto for the presidency.

"(Soeharto) has reminded us that he might step down, but Golkar insists on renominating him. We should have an alternative candidate because he might turn down another term." (amd)