Threat to economic recovery

Threat to economic recovery

While the process of the country's economic recovery is still
causing concern, President Megawati Soekarnoputri's
administration continues to sustain leadership erosion, which may
be ascribed to, among other things, bribery allegations involving
members of the House of Representatives, the refusal of House
Speaker Akbar Tandjung to give up his seat despite a criminal
conviction and alleged corruption by Attorney General M.A.
Rachman.

In the economic sphere, the Indonesian Bank Restructuring
Agency (IBRA) has been involved in unsound practices in the sale
of credit assets/property, the 2002-2003 state budget has been
patched up here and there, there is a problem with bonds issued
for bank recapitalizations, as well as problems with the merger
of five private banks to form Bank Permata.

In short, threats are looming for our economic recovery. To
make matters worse, most of our leaders have lost the ability to
feel ashamed and simply pursue their own interests. They turn a
deaf ear to any criticism. Understandably, international rating
agencies have placed Indonesia in a very low position in terms of
good corporate governance and country risk standards. Investors,
of course, will not invest here and Indonesia must rely heavily
on foreign loans.

It is time President Megawati established strong government
institutions with honest personnel who can command respect and
implement good governance. Otherwise, foreign creditors will take
control of the country's economic resources. -Bisnis Indonesia,
Jakarta