I

refer to an analysis article entitled, '€œFuel price hike: the higher, the better, (The Jakarta Post, Sept. 18), by Harry Su.

This oil price increase will not change the Indonesian economy fundamentally. Many so-called analysts have only superficial understanding of the economy. Indonesia needs to rationalize more on its expenditures for civil servants (people and goods).

It took a lot of state budget. It is even more than the energy subsidy. But the output is not clear. Indonesia'€™s economy needs to have a better bureaucracy and rule of law. Unless and until these two issues are addressed appropriately, the economy will still be the same next year and the year after.

Worse, Indonesia will only face more high inflation eroding domestic demand and make the rupiah even more worthless. So analysts need to be more substantive in their approach to the economy. We need a smaller, clean and more effective government.

Bureaucracy needs to be streamlined as far as possible.

Faroek Alwyni
Jakarta