Saving our economy

Saving our economy

From Media Indonesia

The exchange rate of the rupiah is once again fluctuating so that at one period it was as low as Rp 8,000 per US$1. This tendency has not only caused alarming concern to the community, but has also increased people's economic burden. People in the business world needing U.S. dollars to import raw materials, or for the settlement of their debts, will be very much affected in their business activities by the declining value of rupiah. All this will only further aggravate the economy, so that the prospect of domestic economic recovery remains absurd.

In the context of economic recovery, various analyses and discussions have been made by both economists and observers. However, noneconomic factors have always affected the sentiment as shown in one economic indicator, namely the market. The market will always respond instantly to any disturbance to stability in political and security matters.

So, in addition to continuing efforts to ensure that the political and security fields remain stable in order to create a conducive business atmosphere, there are still a number of ways to save our economy.

First, to stimulate the national savings drive in order to obtain a source for development financing. Second, to stipulate policies on the restriction and selection of the importation of luxury goods and other consumer goods which are deemed unnecessary in order to economize on our foreign exchange, and at the same time optimizing the exportation of various prime commodities in order to increase our foreign exchange earnings. Third, to accelerate the restructuring of private debts and the recapitalization of banks. Fourth, to ensure that offshore loans are reduced, just as other countries hit by a similar monetary and economic crises have done. If these political steps go together with economic measures, our economic recovery will be a prospect full of optimism.

ARI P.

Jakarta