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KOLOM SUPANGKAT:

THE PREOCCUPATION OF POLITICS, ECONOMY IS GOING DOWN THE DRAIN

Our economy is going nowhere if not down the drain in spite of the
multibillions
dollar loans from the IMF and the CGI because they made a very wrong
diagnosis, thereby they are going to give the wrong therapy to the near
terminally ill patient.

The Habibie cabinet took the easiest way out of the crisis by applying the
Keynes-
ian Deficit Spending to be financed by foreign loans.
Deficit Spending is one way to utilize the savings to revive the industry, and
since
our savings is artificially stuck by the 50% interest rate, nobody in the
world would withdraw his saving to "gamble"  to cure the "ICU" (Intensive Care
Unit) patient!  Especially when the highests rate you ever can get is 50%,
unparallelled in world economy.

Keynesianism is totally being disgraced unduly.

Besides, foreign loans is a drop of water into the ocean to finance the
revival of
the economy. There must be another alternative. The Indonesian economists
must find a way to do it, if not now, then after the election. But given this
lose-
lose situation, why do we have to beef up our foreign loans which we could not
afford to pay back in the foreseable future because we were buried to the neck
with the existing unpaid loans?

The prospective winners of the next election never paid attention, if there is
any
at all, to the revival of the economy, even one single economist like PDI's
Kwik Kian
Gie would be dwarfed by the worsening problems until then.

Why isn't there an Association of Economists to brainstorm our economic woes?
Everybody seems to be preoccupied by politics, politics, and nothing but
politics.

H.S. Hidayat Supangkat
New York.

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Didistribusikan tgl. 25 Feb 1999 jam 13:21:29 GMT+1
oleh: Indonesia Daily News Online <[EMAIL PROTECTED]>
http://www.Indo-News.com/
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