Wooing capital back

Wooing capital back

There is obviously a need for Indonesia and Singapore to
cooperate. Aside from the fact that for the smooth flow of trade
we are to a considerable degree dependent on Singapore, there is
the reality that many of our billionaires are keeping their money
in Singapore.

Capital flight is one of the reasons why the rupiah has
drastically fallen in value and our economy has been thrown into
a devastating crisis. Now it is said that capital owners abroad
are trying to persuade the government to give them special
treatment, such as by giving them tax pardons, in return for
their bringing back their money to Indonesia.

This obviously poses a dilemma for President Abdurrahman
Wahid's administration. On the one hand, the money is needed to
revive the Indonesian economy. On the other, granting tax pardons
could invite negative reactions from people who demand fairness.

We therefore urge Abdurrahman to be careful in drafting his
policies. We do support his diplomatic alacrity because it is
needed. We do need breakthroughs to get us out of the isolation
of the past couple of years. Internally, however, we also need to
rebuild a strong spirit of national solidarity.

-- Bisnis Indonesia, Jakarta