Blueprint needed to face globalization<\/p>\n
JAKARTA (JP): The Indonesian people will fall victim to free
\ntrade unless the government designs and implements policies that
\nwill develop a competitive economic base.<\/p>\n
\"I think we need to design a blueprint in all economic sectors
\nthat will enable us to see what we need to do in facing the
\nprocess of globalization,\" said economist Rizal Ramli, the
\nmanaging director of Econit, an industry, trade and economics
\nadvisory group.<\/p>\n
Speaking at a discussion on how to design an effective
\neconomic policy for the globalization era, Rizal pointed out that
\nin other countries such as Taiwan, South Korea and Japan, the
\ngovernment is on the side of the public and its small and medium
\nscale businesses.<\/p>\n
The discussion was organized by Forspin, a forum studying
\nindustry and investment issues.<\/p>\n
\"They also have conducive regulations for the small
\nentrepreneurs to expand their businesses,\" he said, adding that
\nIndonesia should work harder to fully mobilize the people's
\npotential.<\/p>\n
\"We're currently too busy with short-term issues such as
\ninflation, balance of payments and interest rates. But we don't
\npay enough attention to the macro-economy that includes the issue
\nof utilizing the economic potential of the majority of the
\npeople,\" he said.<\/p>\n
He cited Taiwan as an example, where about 80 percent of its
\neconomic power is held by small and medium-scale businesses.<\/p>\n
Indonesia still has a strong concentration of businesses in
\nevery economic sector. A few conglomerates dominate the economy,
\nleaving the majority of the general public with little room to do
\nbusiness.<\/p>\n
He said that the main problems of the Indonesian economy are
\nthe issues of high profit margins and the massive capital
\naccumulation of big companies. Further slowing the economy are
\nthe low margins and the public's slow accumulation of assets.<\/p>\n
According to Rizal, economic gaps will continue to widen if
\nthe condition persists.<\/p>\n
Fahmi Idris, an executive of both Golkar and the Indonesian
\nChamber of Commerce and Industry (Kadin), said that Indonesia
\nmust do more than change its economic policies. \"It should also
\nchange its political system to allow bigger benefits for the
\ngeneral public.\"<\/p>\n
The poor economic conditions of the majority of the people are
\npartly due to the absence of direct relations between the ruling
\nparty and the general public, he said.<\/p>\n
\"In Indonesia we don't see any ties between the ruling party
\nand the general public as we see in other countries,\" he said,
\nciting Japan as an example where the government clearly protects
\nits farmers.<\/p>\n
He added that when a political party wins an election in
\nIndonesia it should become the holder of political power and use
\nits power to maximize the potential of the general public. (13)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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