Step up efficiency

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