Analysts criticize state economic management<\/p>\n
JAKARTA (JP): Observers spoke out yesterday against what they
\ncalled the growing clout of capital owners in the country's
\nsocial, economic and political scenes.<\/p>\n
Adi Sasono and Amien Rais, both members of the Association of
\nIndonesian Moslem Intellectuals (ICMI), separately warned
\nyesterday against letting the capital owners' domination
\ncontinue.<\/p>\n
\"Indonesians don't want to see the country controlled by
\ncapital owners,\" said Adi, who is also a senior researcher at the
\nAgency for the Assessment and Application of Technology (BPPT).<\/p>\n
\"A healthy state economic policy should benefit the majority
\nof people,\" said Amien in a seminar on Islamic economic systems,
\nin Yogyakarta yesterday.<\/p>\n
Adi said control of the economy as well as political affairs
\nby a small group of Indonesians could cause a widening
\nsocioeconomic gap among people. \"(The gap) would sow discontent
\namong people, and could eventually provoke violence,\" said Adi.<\/p>\n
He cited a series of riots, which he said were triggered by
\nthe socioeconomic gap, in Indonesian cities before and during the
\nelection campaign in May this year.<\/p>\n
Adi said ICMI, with President Soeharto's instruction, has
\nbegun researching and investigating the riots. The organization
\nwas striving to understand the root of the problem and recommend
\na solution.<\/p>\n
Adi suggested that the public be empowered economically, and
\nthat poverty eradication programs be accelerated so that
\nIndonesians at all levels could improve their quality of life.<\/p>\n
\"If people are satisfied, it will simplify the ongoing process
\nof democratization in the country,\" he said.<\/p>\n
Amien, who is a lecturer at Gadjah Mada University's School of
\nSocial and Political Sciences in Yogyakarta, suggested a balanced
\ndistribution of economic development and the strengthening of
\npeople-oriented economic policies.<\/p>\n
Menara<\/p>\n
He criticized policies which place undue importance on
\ntrivialities.<\/p>\n
He cited the construction of the US$560-million, 558-meter
\nMenara Jakarta -- the tower project funded by a consortium of
\ntycoons, including Sudwikatmono, Prajogo Pangestu and Henry
\nPribadi.<\/p>\n
\"It would be better if the money was used for improving
\npeople's welfare,\" he said.<\/p>\n
Adi also suggested that the government exercise a form of
\ncontrol over capital ownership.<\/p>\n
\"It is difficult nowadays to trace the citizenship of capital
\nowners,\" he said.<\/p>\n
He criticized the sale of Indonesian company shares to
\nforeign-based companies, and called it capital flight.<\/p>\n
He did not mention names but was apparently referring to the
\ngiant Salim Group's cement firm PT Indocement Tunggal Prakarsa's
\ndecision to sell 50.1 percent of its shares in the group's
\nfoodstuff firm PT Indofood Sukses Makmur to QAF, a tiny foodstuff
\ncompany listed in Singapore.<\/p>\n
\"Who can guarantee that the Singapore company's shares will
\nnot be sold in the stock market some day?\" he asked.<\/p>\n
The government has declared that there will not be any capital
\nflight resulting from Indocement's restructuring.<\/p>\n
\"Instead, the move will generate a capital flow of Rp 1.7
\ntrillion (US$655 million) and also generate Rp 122 billion in
\nincome tax for the government,\" Coordinating Minister for
\nProduction and Distribution Hartarto said last month.<\/p>\n
\"Moreover, the government will not only retain its 25.73
\npercent stake in Indocement, valued at Rp 2.4 trillion, but will
\nalso own 10.18 percent of Indofood worth Rp 1 trillion,\" he said.<\/p>\n
He also defended the Salim maneuver, saying that the Singapore
\ncompany will still be controlled by Salim's companies (Mekar
\nPerkasa, Citrabuana Dirgapuri and Kaolin Indah Utama) as the
\nmajority owners.<\/p>\n
Amien disagreed with the widely publicized argument that
\nSalim's maneuver was a new form of nationalism.<\/p>\n
\"It seems difficult for us (people) to understand whether the
\nstate economic policy is right or wrong,\" he said.<\/p>\n
Minister\/Secretary Moerdiono rejected criticism that Salim's
\nmove was not nationalistic.<\/p>\n
\"Nationalism means doing the best for the national economy and
\ngiving the greatest benefit to the people,\" Moerdiono said last
\nyear. (imn\/23)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/analysts-criticize-state-economic-management-1447893297",
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