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)