Bappenas' role comes into question<\/p>\n
JAKARTA (JP): Chairman of the National Development Planning
\nBoard (Bappenas) Ginandjar Kartasasmita hinted yesterday that it
\nmight be necessary to review the role of the board as the
\ngovernment loosens its grip on the private sector.<\/p>\n
"Our economy is getting more privatized and the government no
\nlonger controls most production sectors. That raises questions
\nabout the likely future role of Bappenas," he told a development
\nplanning seminar at his office.<\/p>\n
Ginandjar, also the minister for national development
\nplanning, said that the private sector is becoming so strong that
\nit can either accept or ignore government policies as it pleases.<\/p>\n
"When we introduced minimum wages for workers, for instance,
\nmany businessmen said they would move their businesses abroad,"
\nhe said.<\/p>\n
The seminar, attended by economists, prominent businessmen and
\nmedia figures and representatives of non-governmental
\norganizations, discussed the role of development planning in the
\ncurrent era of globalization.<\/p>\n
Ginandjar pondered whether inadequate development planning was
\npartly responsible for the widening gap between rich and poor in
\nIndonesia.<\/p>\n
"That's why I invited you here, so that we can thoroughly and
\nvigorously discuss the issue," he told the seminar.<\/p>\n
Last week, the owners of almost 100 of the country's largest
\nbusiness groups gathered in Bali to exchange ideas about how the
\nwidening disparity between the poor and the rich might be
\naddressed.<\/p>\n
Among the participants yesterday were economists Christianto
\nWibisono, Dorodjatun Kuntjoro-Jakti, Adi Sasono, Didik J.
\nRachbini, Faisal Basri, Mari E. Pangestu, Rizal Ramli and
\nSjahrir; publisher of the Kompas daily Jakob Oetama; Samsul Basri
\nof the Suara Karya daily; businessmen Sofyan Wanandi, Aburizal
\nBakrie, Theodore Permadi Rachmat, Fahmi Idris and Arifin
\nPanigoro; and, representing NGOs, Bambang Ismawan and Bambang
\nWiwoho.<\/p>\n
Many participants at the seminar raised the issue of the
\nwidening disparities between rich and poor, between the central
\ngovernment and local administrations and between the western and
\neastern provinces of Indonesia.<\/p>\n
Decentralization<\/p>\n
Faisal Basri, an economist at the University of Indonesia,
\nsuggested that Bappenas speed up the decentralization process so
\nthat local administrations would be more autonomous in developing
\ntheir areas.<\/p>\n
"Look, more than 94 percent of the national income is spent by
\nthe central government and less than six percent is allocated to
\nlocal administrations. If the state budget is virtually
\nmonopolized by the central government, how can the local
\nadministrations develop their areas with local initiatives and
\nautonomy?" Faisal asked.<\/p>\n
Economist Sjahrir called for more democratization of the
\ncountry's economy, saying the government is still reluctant to
\nabolish its monopolies over several basic commodities, such as
\nwheat and sugar.<\/p>\n
Sjahrir said that the government appeared to be indulging in
\nself-congratulatory complacency over the impressive economic
\nindicators, such as the rates of growth and investment.<\/p>\n
"But the government seems to ignore the vital aspect of
\nequity," he added.<\/p>\n
Some participants complained about Bappenas' perceived
\nshrinking role and decreasing clout in the country's development.<\/p>\n
Businessman Sofyan Wanandi, for instance, said that the
\ncurrent Bappenas seems to be much weaker and less influential
\nthan that headed by Widjojo Nitisastro (in the 19670s and 1980s).<\/p>\n
Ginandjar responded that the comparison was unfair because he
\nis not concurrently holding the portfolio of coordinating
\nminister for economic affairs, as Widjojo did when he led
\nBappenas.<\/p>\n
"What Pak Widjojo held at that time is now taken up separately
\nby three ministers: Myself as chairman of Bappenas, Saleh Afiff
\nas coordinating minister for economy and finance and Hartarto as
\ncoordinating minister for industry and trade," Ginandjar said.<\/p>\n
Inequity<\/p>\n
Businessman Fahmi Idris blamed growing economic inequity on
\nmonopolies and oligopolistic practices which, he said, have been
\ndistorting the market economy.<\/p>\n
"The government seems unable to cope with those economic
\ndistortions," Fahmi told the meeting.<\/p>\n
He said that even common people were fully aware of the
\nirregularities and bad business practices which benefit only a
\nfew.<\/p>\n
He warned that pent-up frustration on the part of ordinary
\npeople might explode in a massive outburst of anger, such as
\noccurred many years ago.<\/p>\n
Adi Sasono of the Center for Information and Development
\nStudies concurred that the current inequity had been generated by
\nwhat he described as the government's preferential treatment of a
\nfew business groups.<\/p>\n
He hailed the market economy principle the government has been
\npursuing over the past 10 years, but nonetheless urged the
\ngovernment stop its "excessive" intervention in order to allow
\nnormal market mechanisms to operate.(rid\/vin)<\/p>",
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