Wed, 17 Dec 1997

Whence come rumors?

Public concern about the health of President Soeharto has apparently been exploited by some people to instill fear into the financial markets, leading to the renewed free-fall of the rupiah these past few days. Rumors about Soeharto's failing health has sent the rupiah plunging, almost by leaps and bounds, touching a record low each day. Yesterday, it hit the psychological barrier of Rp 6,000 to the dollar.

The rumors gained currency in spite of repeated assurances -- first by his officials, and later by Soeharto himself -- that there was nothing wrong with his health. The President simply needed to take a rest for 10 days after a strenuous overseas trip. The market continued to be jittery nevertheless, and his decision to cancel a number of foreign trips seemed to lend credence to the rumors.

We leave the difficult task to the authorities of investigating who started these malicious rumors. But the fact that the wildest of rumors could impinge on business decisions illustrates the precarious condition of the economy. Public confidence over the economy -- and some would add over the government's ability to manage the economy -- is at a very low ebb, so much so that people are prone to believe rumors more than official statements.

The rumors circulating have ranged from saying that Soeharto was suffering from flu or a stomach ailment to speculation at one point that he had even died. The reality is, of course, very different.

A true soldier and fighter, Soeharto never took the rest as prescribed. He continued to work from his residence, summoning and receiving ministers. He ordered the monetary council to handle the monetary crisis.

In short, in spite of doctors' orders to rest, he continued leading the nation the way he has been doing for the last 32 years. This, perhaps, explains in some way the strong public concern, or fear, for the President's health.

Soeharto has been the central figure in Indonesia for the past three decades. He is the only one among his peers still fully active in government. In the absence of any clear successor, his health has naturally become the concern of the people he leads.

We are reminded of Sukarno, Soeharto's predecessor, in the last years of his leadership, particularly in 1965 when his health also became the talk of the town. The rumors circulating then said that Sukarno was suffering from kidney problems. Sukarno, of course, lived for another five years, but rumors of his failing health apparently led to the Indonesian Communist Party's (PKI) decision to launch the coup d'etat in September of that same year which unleashed political turmoil.

We are drawing an analogy between Soeharto and Sukarno solely for the purpose of illustrating that a leader is a human being who is not immune to fatigue and illness, even if the best medical team the world is on hand to help. It happens to the best of leaders.

Russian President Boris Yeltsin is currently resting in a sanatorium. George Bush and Ronald Reagan were hospitalized during their terms as American president. A head of state taking a rest is nothing unusual. Malaysia's Prime Minister Mahathir Mohamad took a three-month rest this year and went on a tour of Europe.

What distinguishes Indonesia from these other countries is the psyche of its people. Even the slightest hint of trouble affecting the health of the Indonesian President has had strong ramifications in society. In Sukarno's time, it affected the political situation. Today, it is the economy that is taking the brunt. That, sadly, says a lot about the political culture in this country.