The President said the media frequently reported baseless rumors or news without taking into consideration whether they were newsworthy, accurate or what their impact would be on the nation.
He pointed out to national media bosses that such irresponsible reporting had become a boomerang for the media industry itself as it had become among the first victims of the current economic hardship.
"Now it (the rupiah's fall) brings negative impacts to the media which initially ignited its development. The press itself has been among the first direct victims of the economic crisis with the very sharp increase in the price of newsprint," the President said in his speech marking National Press Day at the State Palace.
The rupiah's free-fall against the U.S. dollar has caused newsprint to rise nearly five times in price since last year, and about 200 of more than 280 publications are reportedly on the brink of bankruptcy.
In the last few weeks some newspapers have reduced staff, number of pages or the size of their papers.
"Intentionally or unintentionally, the national media actually has also contributed to the unfavorable atmosphere to restore (economic stability)," Soeharto said.
The ceremony was attended by most of the country's senior editors both from the print and electronic media. Minister of Information R. Hartono, Minister of Religious Affairs Tarmizi Taher and Minister of Post and Telecommunications Joop Ave were also present.
"There have been many cases recently that indicated how the people were easily made restless ... (They) became irrational because they were provoked by media reports that were not proportional to the economic situation," the President said.
He also called for a revision of journalistic ethics, "especially for television and radio which have played a big role in triggering people's quick reactions to responding to their reports on the economic crisis."
Experts say that the influence of TV news is steadily rising and the supervision of their reports is less strict than the controls over the print media.
TV and radio stations, however, have also been seriously affected by the crisis as advertising revenues are drying up.
Jakarta-based daily Berita Yudha switched to tabloid format from yesterday in order to survive. The financially strong Jawa Pos Group has also had to slim down the size of Jawa Pos and Suara Indonesia, from nine columns to seven columns.
Contrary to precious reports, however, newspapers in Medan North Sumatra are still alive. They have vowed to struggle on as long as possible
The chairman of the Indonesian Journalists' Association Sofyan Lubis, said in his report to the President that skyrocketing newsprint prices had severely affected the media industry.
"But we believe, as we have for a long time, that Bapak will not forget the national press and will always be united with us, " Lubis said in reference to Soeharto.
"We believe that the government will do something to resolve it (the price of newsprint)," Lubis added.
Lubis also presented a donation of gold to the President as evidence of journalists' strong support of the government's efforts to overcome the economic crisis.
"We do not need to see it (the donation) in terms of its value itself. What is important is the (expression) of solidarity of the journalists in facing the current situation," Soeharto replied when receiving the donation of undisclosed weight. (prb)
