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