The crisis: a long time coming
The crisis: a long time coming
From Merdeka
The Sunday, Jan. 18 edition of Merdeka wrote very comprehensively about the nation's monetary and economic situation.
Its focus was on the middle and lower classes in society.
The crisis is a regional problem shared with other ASEAN countries.
But the decline of the rupiah to Rp 15,000 per dollar after the Indonesia-IMF agreement places it in the worst position.
As a token of love for the rupiah, many people have exchanged their dollars for rupiah. It seems the drive will do little to help us solve our difficulties.
The prices of daily commodities have already gone up. After Lebaran, if gasoline prices are increased, prices of goods will be raised again, except if the authorities dare to take firm steps against traders hoarding the goods.
A.A. Baramuli has rightly pointed out the seriousness of our economic crisis.
The problem started in the Second Five-Year Development Program (Repelita II) due to corruption and collusion between government officials and business people.
Officials asked for commission from the business people who were given business and credit facilities. It was not surprising because high-ranking officials had previously looked for money by seeking assistance from PT Timah and PT Pertamina, the state- owned tin and oil companies respectively.
On the basis of constructing important projects, corruption and manipulation took place within the two companies. The community was aware of the exploits.
However, no legal steps were taken against them.
If A.A. Baramuli now says that, since Repelita II, collusion has occurred between high-ranking officials and business people, with the reason perhaps being the collection of funds for a number of foundations.
The community knew about it and remained calm.
As for the Armed Forces' instruction for business people to withdraw their dollars from abroad and bring the money home, I trust that the tycoons will not respond that easily.
First, their money is located abroad and they just have to move to a foreign country. Second, they will certainly say that it was not easy for them to get the facilities. They had to give money to the officials. Clearly they were not wrong.
The guilty ones are the people who provided the facilities. Why did they trust the business people? They face no penalties.
It is the officials who must take responsibility for Indonesia's losses. So, hopes should not be high that the money will come back to Indonesia.
To save the situation, the government must quickly reshuffle the cabinet which now consists of people from one political group.
The Indonesian Democratic Party (PDI), the United Development Party (PPP), civilians and the private sector must be part of the 1998/2003 cabinet.
Officials who have become rich in the meantime should, together with their families, quickly hand their money over to the state.
Abandoning one's dollars in the context of the Love Rupiah drive and community members donating their gold through religious dignitaries are, in my opinion, not helping the country overcome the monetary/economic crisis.
Just look at Pakistan, where citizens once donated their gold to the state. The citizens have remained poor!
H.G. MALIKMASS
Ciputat, West Java