Transparency needed to boost public trust

JAKARTA (JP): A political analyst has urged the government to be more open in explaining all aspects of its economic reform package, to avoid public speculations.

Amien Rais, of the University of Gadjah Mada, said here over the weekend that transparency will also strengthen public trust towards the government's reform package sponsored by the International Monetary Fund.

"The lack of government transparency (in informing about various banks' condition) provoked a rush on Bank Central Asia (BCA)," Amien said after speaking at the launch of a book, Indonesia-Timur Tengah: Masalah dan Prospek (Indonesia-Middle East: Problems and Prospects).

The rush of depositors withdrawing their funds from BCA branches in several major cities on Friday was sparked by rumors that BCA was closing its office in Singapore and that Liem Sioe Liong, founder of Salim Group, had died.

Jitters over BCA came just a fortnight after the government closed 16 ailing banks.

"So, right now, the government is challenged by objective conditions to be more open and transparent. Transparency will revive public trust," said Amien, who chairs the 28-million strong Moslem organization Muhammdiyah.

He said the core of good governance is public trust, and if the public fails to trust the government, then its legitimacy would also be questioned.

He said the government must clearly inform the people on the national economic outlook, no matter how bleak it may be.

"If the government fails to inform the people on the 'real' economic situation, we will all suffer the consequences," he warned.

Television

In line with the spirit of greater transparency, Amien urged the government to allow private television stations to broadcast live tomorrow's hearing of the House of Representatives' Commission VIII for state budget and finance with Minister of Finance Mar'ie Muhammad.

"The hearing must be broadcast by TV stations. The government should not cover things up, so the public will be well-informed," Amien said.

A planned live broadcast from the House of Mar'ie's explanation last week on the economic reform package was abruptly canceled after the government intervened.

Minister of Information R. Hartono said at the time that the decision to ban the broadcast was made in accordance with the newly adopted broadcasting law.

However, the broadcasting law does not clearly specify procedures for private television stations intending to make live broadcasts from the House.

When asked to comment if the current economic crisis could lead to a political crisis, Amien said that in the modern era, politics and economics are like "two sides of the same coin".

"The spillover effect is possible."

Amien lamented the sluggish pace to seize Hendra Rahardja, owner of two of the liquidated banks, Bank Harapan Sentosa and Bank Guna Internasional, who was abroad when the liquidation announcement was made.

National Police Chief Gen. Dibyo Widodo said that the police have not received any orders to detain Hendra.

"Up till now, there has not been any accusation filed with the police. If there is one, we will arrest him," Dibyo was quoted Saturday by Antara. (10)