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)