Susilo's economic policy

Susilo's economic policy

President Susilo Bambang Yudhoyono's lack of resolute
macroeconomic policy is a recipe for economic disaster on a
magnitude similar to the hyperinflation of 1998. With Indonesia
importing oil at inflated prices and selling at much lower price,
we are practically importing inflation.

Furthermore, this condition is aggravated by the government's
inaction, which causes investors uncertainty and thereby further
weakening the rupiah against the U.S. dollar. What Indonesia
needs now is a strong macroeconomic policy aimed at halting a
further slide against the dollar. The government should make
uncompromising fiscal and monetary policies to stem consumption,
and therefore halt both inflation and the devaluation of the
rupiah.

At the same time, the government needs to appreciate
Pertamina's crude oil price, adjusting it to the world's market
faster. Time is not a luxury we have and the president must be
strong, determined and above all prepared to undertake the risk
of being criticized in order to rectify this economic
disequilibrium.

INDRA ADITYA PAMBUDY, Jakarta