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