SOME OTHER MATTERS MORE IMPORTANT THAN CENTURY CASE : ECONOMIST

Jakarta, March 10 (ANTARA) - An economic observer reminded the government and the House of Representatives (DPR) on Wednesday there were matters more important than the Bank Century case that required their attention.

"The government and the DPR should keep working while dealing with the Bank Century case. But so far the two sides seem to be preoccupied with the case and to have forgotten their tasks to improve and maintain the stability of the economy," economist Aviliani from Indef said at a discussion at the parliament building.

She said Indonesia, China and India could indeed deal with the recent global crisis but in view of the current economy and future prospects it was not impossible for the country to be dragged into a worse-than-1998 crisis.

She said the Bank Century case had caused the government and the DPR to divert their attention from the country's burden and future challenges.

She said the biggest economic challenge the country would face was an economic bubble which could burst any time because money that had flowed into the country was short-term and not invested in the shares of listed companies, right issues and others.

What was happening, she said, was mere capitalization, namely money begetting money while the funds that went into government bonds was merely used to cover the budget deficit.

"If instruments like the Financial System Safety Net (JPSK) and the Financial Service Authorities (OJK) are not prepared from now it is not impossible that a crisis bigger than that in 1998 will happen. Other countries that were affected by the recent crisis are now performing well because they have made preparations while we, who were unscathed, may collapse. If the economic bubble bursts while the law to deal with it had still not been made, who will then be responsible if the crisis does happen. It is not that the Bank Century case occurred because the law is not clear or becuase the JPSK and OJK have not yet been made," she said.

She said the DPR's intention to boycott finance minister Sri Mulyani would be very dangerous if it was implemented. She said all sides should remain functioning no matter what the problem was.

"I have heard that Sri Mulyani will be boycotted by parliament when she wants to discuss the national budget. This is not right. It seems everybody has become paranoid. The NGOs, the media, the executive and the legislative have become suspicious of each other, creating rumors like barters, pressures and others which actually are hollow but because of media coverage everybody is discussing them," she said.

Aviliani also criticized the ruling party's moves or people in the palace who were questioning things like Aburizal's tax problems and fake L/Cs and others.

"They are all legal matters. Do not mix them with politics. Politics and the law must run separately. If the situation is neglected there will be stagnation because rules will not be functioning," she said.