The new state budget

The new state budget

Our impression is that the government is on the right track in
its efforts to fix the economy. Despite its shortcomings, the
draft budget reflects the government's intention to provide more
jobs, increase the public's purchasing power and dispose of
subsidies that would be a burden. The budget also signals the
government's design to provide support to the lower-to-middle
income categories of the population, without creating asset
reallocation problems -- a subject that has become a most
sensitive political issue.

Since 1993 the government has ceased to be the major moving
force of the economy, due to a shortage of funds. Thus, the
private sector was encouraged to assume a greater role. So, we
understand why the government at one point decided to assume a
merely facilitating role by creating a more conducive investment
climate. The situation at present is different. The government
cannot do much to revive the economy, as the budget figures, at
least, show. At the same time the private sector is in a state of
lethargy.

The government at present does indeed need to send out
positive signals in every direction in order to repair
Indonesia's shattered image. The string of incidents that have
occurred since May this year has had a widespread effect and much
time will be needed to repair the negative impact. The coming six
months will be a period filled with great uncertainty. The
nation's political agenda will become prominent, particularly
during the run-up to the general election, when each of the
political parties will be vying with each other to bring about a
"brand awareness" in its favor among voters.

We expect that during such a period, political assessments
will be given of people-oriented economic policies. We hope that
in such a situation all parties concerned will be able to think
clearly and not indulge in serving their own self-interest. The
fate of the nation is at stake and if we do not manage to pull
ourselves up, we will be in an even worse condition than the
present as we enter the third millennium.

As has been said before, the state budget has many
shortcomings and some even regard it as an effort to buy time.
However, we do not have many choices. So, all of us must strive
to amplify the positive impression that it creates.

-- Bisnis Indonesia, Jakarta