Step up efficiency

From Paris it was reported yesterday that the World Bank--one of the donors in the Consultative Group on Indonesia--warned of three challenges that face the Indonesian economy as it strives to maintain its high growth.

The first challenge is posed by the fact that the Indonesian economy tends to easily overheat due to its rapid growth. The second is for Indonesia to conduct a solid macroeconomic policy, prudently manage its foreign debts and establish a working pattern that ensures the efficient use and assists repayment of foreign loans. The third challenge is for Indonesia to ensure it can compete in an increasingly competitive export market.

Not less interesting is the fact that in the 200-page report, the World Bank also offers options which Indonesia could take to answer those challenges. The first and most important option is for the government to push for greater efficiency and equity. Seven more suggestions are intended to maintain the macroeconomic stability, manage foreign loans prudently and boost investor confidence.

As a sovereign country, we naturally reserve the right to reject the World Bank's suggestions as we did some time ago with that institution's criticism of our efforts to nurture an economy based on high-technology.

This time, however, in these decisive moments pending the breaking of a new era of free trade and free markets, the World Bank's suggestions carry a convincing and lucid relevance. As our foreign debts reach the US$100 billion mark it certainly is imperative that we manage those loans with the greatest prudence. And as our non-oil exports must increasingly compete with rival products, it is only natural that we step up our competitive standing.

The key words to heed to make those efforts work are efficiency, deregulation and equity.

-- Kompas, Jakarta