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Indonesia's Economic Problems Need Immediate Attention
by Kazi Mahmood
JAKARTA, May 28 (IslamOnline) - Due to an ongoing political crisis, the Indonesian economy has slipped to it's lowest and is losing time in its attempt to redress the economy, Professor Emil Salim, a leading economist at the University of Indonesia, said.
Salim said to local press in Jakarta over the weekend that the country should take two strategic measures, namely to get out of the lingering economic crisis and to cope with the competitive economy's challenge in the context of the ASEAN Free Trade Area (AFTA) 2003.
According to Salim, Indonesia is in desperate need of skilled and qualified human resources necessary to empower already existing resources.
Salim, a former minister during President Suharto`s administration, voiced his concerns during the eighth summit conference of the Sriwijaya "Tenaga Pembangunan" (Development Agents) Saturday.
He stressed the need to develop the economic potential available in different regions of the country, saying that regional economies would in turn help strengthen the national economy.
The power of Indonesian economic competitiveness lies, among other things, in the country's ecological resources, Salim said.
One of the factors that not helping the Indonesian economy is the distribution of manpower throughout the country. In certain areas the distribution of manpower as opposed to economic consumption in other parts of Indonesia lags behind, he said.
Salim also pointed out that the Indonesian people were marked by diversity in terms of ethnics, religions and political orientation.
He added that integrative factors should be strengthened to prevent the possible occurrence of horizontal and vertical conflicts that might, in turn, also affect the national economy.
On the other hand, professor Halim Ibrahim, in Kuala Lumpur, said the country might have missed important chances in its bid boost the economy.
He said Indonesia was in need a structural adjustment of its finances and that the Rupiah, the national currency, could not be allowed to stabilize at $1.00 = 11,500 Rupiah.
He said measures should be taken to bring it back to the acceptable level of $1.00 = 8,500 Rupiah. "This is necessary to give confidence to investors. The currency must not be devalued further." Ibrahim said.
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