Support, criticism pour in for reform package

Support, criticism pour in for reform package

JAKARTA (JP): Senior economist Emil Salim said yesterday he
was optimistic the government's economic reform package, to be
conducted under the supervision of the International Monetary
Fund, would give Indonesia a competitive edge necessary to face
the ASEAN Free Trade Area by 2003.

He supported his remarks by referring to what he called the
package's structural reforms such as the elimination of some
monopoly practices. He also said the elimination of export,
foreign investment and trade restrictions would open up trade
between the provinces. This would help the domestic economy
recover and help create one market.

"If we want to enter the global market, there must be one
market in this country first," said Emil, a former cabinet
minister.

He said the government was serious in carrying out the
reforms, adding that President Soeharto had showed his
willingness to take personal responsibility for the
implementation.

He said Soeharto's decision to announce the planned reform
himself and establish the Council for Economic and Monetary
Resilience constituted the highest political decision in
Indonesia.

"This is not mere lip service, or fake. This is serious. In
1998 and 1999 there might be some upheavals, but further
(implementation of the reforms) will create a healthy domestic
economy," he said.

Political observer Arbi Sanit and non-governmental
organizations (NGOs) activists Asmara Nababan and Bambang
Widjojanto criticized the reform package for failing to address
what they believed to be the root of the current predicament -- a
corrupt bureaucracy.

Speaking separately, they agreed the package might not be
effective in restoring confidence in the economy. Arbi Sanit, a
lecturer at the University of Indonesia, said the planned reform
package was "impotent" and had failed to impress housewives, let
alone the market and businesspeople.

"Just look at the fall of the rupiah when the package was
announced," Arbi said.

It was reported the rupiah fell to 8,900 against the U.S.
dollar from Thursday's close of 8,025 as banks bought up the
greenback in early trading yesterday.

"The current crisis is political in nature, not purely
economic as what our leaders and the IMF said it had been," Arbi
said.

He added that not only did economic matters have to be
addressed, but also bureaucratic and political reforms.

"How can we expect to have an efficient state budget if the
bureaucrats and rulers corrupt the development budget?"

He said one example of reform needed was in the five laws that
govern Indonesian politics today, which many people believe
prevents the political parties from effectively supervising the
government.

Asmara Nababan, the executive secretary of the International
NGO Forum on the Indonesian Government (INFID), said the reform
package failed to address corruption.

"It did not... show that the government seriously intends to
eradicate corruption, something that has led to so much
inefficiency here," said Nababan.

"How can you restore people's confidence if you don't show
that you seriously want to create a clean government?"

Nababan said that in November last year the IMF jointly
announced with the World Bank and the Asian Development Bank in
Hong Kong, their crusade against corruption and collusion.

Bambang Widjojanto, the chairman of the Indonesian Legal Aid
Foundation, said he doubted the IMF-sponsored reform package
would help the country out of the crisis as enforcement remains
one of the problems in the country.

"The economic reform package is still instituted on paper, but
we don't know whether it will be fully implemented," Bambang
said.

Separately, Vice President Try Sutrisno called on the nation
to work shoulder to shoulder to enable the country to free itself
from the bitter economic crisis.

He urged wealthy people not to be greedy and selfish but ready
to make sacrifices for the progress of the nation.

"Those who have the power and authority are expected to use
their power to realize justice and truth," Try told former
student leaders in commemoration of the 32nd anniversary of
Tritura, or People's Three Demands.

In 1966, student leaders demanded then President Sukarno ban
the Indonesian Communist Party (PKI), dissolve the cabinet and
lower the price of basic commodities.

"We commemorate this anniversary in an atmosphere of
concern... especially when we are facing the monetary upheaval
which has affected the real sector, and even caused a crisis of
confidence, which actually should not have happened," Try said.
(09/10/aan/prb)