Experts call for govt intervention to realize ideals<\/p>\n
JAKARTA (JP): The undertaking to establish a more democratic
\neconomy calls for more government intervention in guaranteeing a
\nfairer distribution of income, assets and access for all, a
\nseminar concluded yesterday.<\/p>\n
Speakers at a seminar held by the National Resilience
\nInstitute (Lemhannas) agreed the 1945 Constitution set the
\nplatform for realizing the ideals of a democratic economic
\nsystem.<\/p>\n
Dorodjatun Kuntjoro-Jakti, dean of the School of Economics of
\nUniversity of Indonesia, said a set of world-wide acclaimed
\ninstruments would be helpful in transforming the ideals into
\ndaily behaviors.<\/p>\n
\"Fairer distribution of income, assets and opportunities or
\naccess should be applied in a nation searching for a democratic
\neconomic system, regardless its historical or cultural
\nbackground,\" Dorodjatun said.<\/p>\n
He said the government's fiscal and tax policies, which
\nincluded progressive and after-sales taxes, have become
\ntaken-for-granted instruments for making a fair distribution of
\nincome.<\/p>\n
As for the distribution of assets, Dorodjatun suggested a
\ntransfer of wealth by imposing taxes on people who were lucky
\nenough to inherit belongings. Japan, for example, stipulates that
\n40 percent of the value of an inheritance goes into the
\ngovernment's coffers, Dorodjatun said.<\/p>\n
Access deals more with having the opportunity to get a job and
\nrun a business, which Dorodjatun characterized as the absence of
\ntrusts and discriminative treatment in career promotion.<\/p>\n
A good example, Dorodjatun said, was the US$700,000 fine
\nrecently imposed on an American bank for denying its colored
\nemployees promotion to managerial level.<\/p>\n
\"We do nothing wrong if we learn from foreign patterns, even
\nthe American liberal capitalism which is a considered villain in
\nthe light of (state ideology) Pancasila,\" Dorodjatun said.<\/p>\n
\"Americans at least are consistent in fulfilling promises
\nstated in their economic idealism,\" he said.<\/p>\n
Dorodjatun warned that failure to transform idealism into
\nbehavior would lead Indonesia into a crisis of credibility while
\nit was bracing itself for a free market in the 21st century.<\/p>\n
\"I'm afraid that from an historical point of view Indonesia
\nwill be outmaneuvered by its competitors when a global market
\ncomes into effect,\" he said.<\/p>\n
To prevent such a thing from happening, Dorodjatun urged
\ndrastic changes to development strategies.<\/p>\n
\"We have let corruption go on for such a long time, and ended
\nup with a corrupt society,\" he said. \"Hence the next five-year
\nnational development program must lead to a new civilization
\neager to establish innovation in management, organization and
\nmarketing network.\"<\/p>\n
Inequality<\/p>\n
Deputy Governor of Lemhannas Juwono Sudarsono supported
\nDorodjatun's views, although he said he believed a democratic
\neconomy did not necessarily mean everybody must have equal
\nincome, assets and access.<\/p>\n
\"Individuals are different by nature, but the government must
\nhelp those who are unlucky improve their capabilities,\" Juwono
\nsaid.<\/p>\n
\"The government can reach the unlucky through policies which
\nguarantee equal pre-conditions for business competition,\" he
\nadded.<\/p>\n
He suggested an adjustment to the principles guiding
\ncooperatives, which are Indonesia's economic foundation, to the
\ncurrent international economic structure.<\/p>\n
\"The ideals of a cooperative will remain poetic verses if we
\ndo not try to conform them with the world's market-oriented
\neconomy,\" he said.<\/p>\n
Earlier in the day, Minister of Defense and Security Edi
\nSudrajat said in his keynote speech that different capabilities
\ncould bring about a wide gap between national companies.<\/p>\n
\"But it's obvious that to some extent the imbalance of growth
\nfrom one company to another originates from unfair competition,
\nsuch as discrimination in bids, facilities to complete licenses
\nand collusion,\" Edi said.<\/p>\n
He said legislation on ethics was needed to avoid the
\nviolations of a competitive economy such as monopoly, oligopoly
\nand conglomeration, affecting a democratic economy.<\/p>\n
Minister of Agriculture Syarifuddin Baharsyah and Minister of
\nCooperatives and Small Enterprises Subiakto Tjakrawerdaya also
\npresented papers yesterday. (amd)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/experts-call-for-govt-intervention-to-realize-ideals-1447893297",
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