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