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