Experts lament govt policy on poverty eradication<\/p>\n
JAKARTA (JP): The government lacks the political commitment to
\nnarrow the widening gap between the rich and the poor and to curb
\nconglomeration in the country's business activities, economists
\nsaid at a seminar over the weekend.<\/p>\n
Didin Daman Huri, an economist at the Bogor Agricultural
\nUniversity, said here Saturday that the government's existing
\npolicies to fight poverty and to support the development of the
\nbusiness activities of small-scale companies remain questionable.<\/p>\n
He acknowledged that the government had introduced a number of
\nfinancial schemes to help small-scale businesses and cooperatives
\nand to fight poverty. "But such schemes are not only insufficient
\nbut also ineffective," he said.<\/p>\n
Didin told a seminar organized by the alumni of the
\nAssociation of Islamic Students that in the past, the
\ngovernment's economic policies were generally directed toward
\nencouraging the activities of medium and large-scale companies
\nmostly owned by businessmen of Chinese descent. Those companies,
\nfor example, faced no difficulties in raising loans from state-
\nowned banks.<\/p>\n
On the contrary, for cooperatives and small-scale companies,
\nthe government's loan facilities were almost "untouchable" not
\nonly due to the small amount of the loans allocated for them but
\nalso due to their inability to meet the requirements of the
\nbanks' bureaucracy, Didin added.<\/p>\n
Bank Indonesia, the central bank, issued a number of
\n"subsidized" loans to stimulate the economic growth in the early
\nstage of President Soeharto's administration. Cooperatives and
\nsmall-scale companies, however, received less than 5 percent of
\nthe credit, while the other 95 percent went to the medium and
\nlarge-scale companies.<\/p>\n
"The privileges given to those medium and large-scale
\ncompanies allowed them to grow rapidly so that they have now
\nbecome large conglomerates," he said.<\/p>\n
Didin noted that the central bank no longer provides
\nsubsidized credit, but the intimate relationship of those
\ncompanies with the government still enables them to obtain more
\nloans from state-owned companies than small businesses and
\ncooperatives can get.<\/p>\n
Their close relationship with the authorities also enables
\nthem to benefit from almost all of the government's large
\nprojects, he explained.<\/p>\n
"This is the main reason why the concentration of business
\nactivities in certain business groups continues." he told the
\nseminar, which also featured senior economists Hartojo
\nWignjowijoto and Eki Syachrudin.<\/p>\n
Didin said that the concentration of business activities among
\na handful of businessmen could be eliminated only by an anti-
\nmonopoly trust.<\/p>\n
"Almost all economists have pointed out the need to introduce
\nan anti-trust law, but neither government nor the House of
\nRepresentatives has touched the issue," he said.<\/p>\n
At the seminar attended by over 500 students and former HMI
\nactivists, Hartojo said the wide gap in the country's business
\nactivities not only resulted from the government's failures in
\nadopting the principle of a market economy and in curbing
\ncorruption, but was also due to the poor quality of the country's
\ndemocracy.<\/p>\n
"How could you help the poor or small companies if the House
\nmembers represent the interests of the authorities," he said.<\/p>\n
Eki suggested that the political climate be changed so that
\neverybody is allowed to criticize the government's policies
\nopenly without any fear. (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/experts-lament-govt-policy-on-poverty-eradication-1447893297",
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