Thu, 07 Sep 1995

Private players in the economy

Gradually deregulating the economy without taking measures in other fields has led to the emergence of strong players. There is no need to try to argue about where the fault lies. All of this may be an accumulative effect in a natural process prompted by openness and changing times. Within certain limits such a trend is not always negative. Nor is it typically Indonesian.

However, what must be done about the domination of those economic players to prevent the government from losing its control function. The answer to this question depends on how well the government is prepared to anticipate future developments. Efforts must be made to optimize the roles of the institutions of control such as the House of Representatives, the judiciary and the press by passing effective laws and regulations.

As long as the dominance of private players can be balanced by an effective control function, we believe there is no reason for concern. Provided that a conducive climate can be created by the government, a leadership role of private economic players supported by strong non-governmental organizations and a strong press could even stimulate development, as (Indonesian economist) Emil Salim has suggested.

In this case, a command of the art of management is needed. The government, as the "manager", should be able to control the development machinery and know when to act while preserving the viability of all the components of the development apparatus.

-- Media Indonesia, Jakarta