Prescriptions for monetary crisis
Complex problems do not necessarily require complicated solutions. They can be solved by simple solutions as long as these solutions lead to critical changes in the system's failings.
In my opinion, the monetary crisis was caused by the discrepancy between our traditional values and those values brought in by globalization, the technological revolution and industrialization. The only solution to this problem is to set up certain barriers to slow down the globalization process while we ready our society to assimilate without disruptions to our socioeconomic life.
To do that, we need to erect temporary economic and political barriers to prevent a flood of foreign influences, products, services and business pressures (including foreign market speculation and manipulation) that can destabilize our country.
This would require some legal revisions so that we would be less vulnerable to efforts by foreign entities to manipulate our socioeconomic system (the IMF program is certainly an example of foreign influence upon our sovereignty and socioeconomic programs).
Our dependency upon foreign entities should be minimized by launching short-term national programs to guarantee the supply of essential commodities, including basic staples, medicines, fabrics, defense systems, transportation equipment, electronics, engineering equipment and water and energy.
A multi-layered comprehensive austerity program would be a must. The rupiah needs to be stabilized and fixed at a reasonable rate based on a sound economic formula. Lines of credit should be established with a number of selected foreign banks so we can obtain necessary raw materials in a reliable manner without any demands over our sovereignty and national programs. Foreign loans should be stopped immediately.
To increase our cash reserves, we should establish a transparent "Save Indonesia Fund" to hold confidential donations and contributions from citizens, groups and other nations sympathetic to our plight.
We have at least 200 conglomerates and plenty of rich citizens, including businesspeople and government officials. If each conglomerate donated a quarter of a billion dollars, we would have at least US$50 billion. Big national and joint-venture companies could donate up to $20 billion. Other rich businesspeople and officials could probably contribute up to $40 billion as well (of course, they would have to withdraw their money from foreign banks).
If 100 million citizens contributed Rp 10,000 each, then the "Save Indonesia Fund" would have an additional $200 million (assuming the exchange rate is Rp 5,000 per dollar).
The fund should be managed by a special committee directly responsible to the People's Consultative Assembly.
I think the best person to chair it would be the Vice President. No investigation or prosecution should be launched against individuals or companies regarding the sources of their contributions. All contributions could be deducted from income and business taxes.
Their should be a one-time amnesty program for contributors who have accumulated their wealth through unlawful activities such as corruption, gambling, drug transactions, etc. without exposing them to the public. We would then have approximately $110 billion, plus the $200 million from lower-income people -- enough to cure our economic problems immediately.
No more borrowing would be needed. And no more dollar transactions would be necessary for domestic purchases. I would be willing to contribute Rp 100,000 as soon as a "Save Indonesia Fund" is set up.
K. PRIBADI
Cimahi, West Java