Think of national interest, not only profit: Rudini

Think of national interest, not only profit: Rudini

JAKARTA (JP): Despite the ongoing crisis caused by the rupiah
depreciation, businesses should still prioritize the national
interest and not seek mere financial compensation by raising
prices, a political observer says.

Rudini, chairman of the Institute for Strategic Studies of
Indonesia, an independent think tank, said over the weekend that
the business sector should not exploit the economic uncertainty
for their own profit.

"They must have social and political responsibility and not
merely seek profits," he told reporters during the launch of two
books written by East Java governor Moch. Basofi Soedirman.

Though the rupiah recovered in late trading, it fell to an
historic low of 3.070 against the U.S. dollar Friday.

Friday's trading at the Jakarta Stock Exchange also recorded a
6.9 percent drop of share prices, pushing the composite index
down to a 21-month low, amid uncertainty over the rupiah's
direction and regional market slump.

Rudini warned that the financial crisis could eventually lead
to widespread discontent.

"You can imagine what it would be like if people couldn't
afford to satisfy their basis needs," he said.

However, he declined to provide solutions to end the financial
crisis.

"We (common people) cannot tell the Monetary Council what to
do. They know about monetary affairs better than we do," he said.

Speaking on the political and security implications of the
crisis, he said it was up to the ministers under the coordinating
minister for political affairs and security to take the necessary
action to anticipate its social and political impacts on the
state.

Rudini, a former minister of home affairs, warned that the
continuing crisis could distract preparations for the general
meeting of the People's Consultative Assembly.

"The general meeting of the MPR needs a conducive social and
political condition, to make the state leadership succession run
smoothly and peacefully," he said.

The 1,000 strong assembly will convene in March, 1997, to
elect the country's president and vice president and draw up the
new Broad Guidelines of State Policies.

Rudini said the government must give clear and accurate
information on the financial crisis as well as its counter
measures to the people so "they will not be confused".

In anticipation of potential social dissatisfaction,
Coordinating Minister for Political Affairs and Security Soesilo
Soedarman asked on Thursday the Monetary Council to revoke its
tight rupiah policy.

Coordinating Minister for Economy and Finance Saleh Afiff said
last month that the government would continue to tighten the
rupiah for some time until market jitters calmed down and the
rupiah stabilized.

So worrisome is the impact of the financial crisis that
Soesilo, Minister of Justice Oetojo Oesman and a number of legal
observers suggested that currency speculators be indicted with
subversive charges. (imn)