Transparency needed to boost public trust

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)