Great tasks face the nation in the next 25 years<\/p>\n
Following are excerpts from the provisional translation of
\nPresident Soeharto's State Address delivered at the plenary
\nsession of the House of Representatives (DPR) on Aug. 16 on the
\noccasion of Indonesia's 49th Independence Day on Aug. 17.<\/p>\n
JAKARTA: As a nation, half a century can no longer be regarded
\nas young. But if we look around to the vast corners of the world,
\nwe see many nations are much older than ours. Not a few of them
\nare hundreds of years old. They are rich with experience, they
\nhave built strong traditions, they have solid political
\ninstitutions and culture. Some of these countries have attained a
\nvery high degree of economic progress and prosperity. Others have
\nnot achieved such progress. While others more have even suffered
\npolitical, economic and social setbacks.<\/p>\n
There are several primary elements that make a nation strong.
\nOr, on the contrary, that make nations weak and divided. Among
\nthe most important elements are the spirit of nationalism, unity
\nand a sense of togetherness. We have to draw valuable lessons
\nfrom the experiences of other nations and furthermore, our own
\nexperience from the Independence Proclamation until today. We
\nneed all of this to widen our horizon in facing the future filled
\nwith changes, challenges and opportunities.<\/p>\n
As a developing country we feel the rapid flow of changes
\ntowards progress. For this reason, there is always a special
\nsignificance as we commemorate the Independence Day every year.
\nThis is also the case on the 17th of August 1994. This is the
\nlast year we finalize the first 25-Year Long Term Development
\nprogram. It is also, at the same time, the first year of the
\nSecond Long-Term Development program, the take-off stage.<\/p>\n
We concluded the 1993-94 fiscal year last March, marking the
\ncompletion of REPELITA V. Thus, we have simultaneously brought to
\na close the First Long-Term Development stage.<\/p>\n
The national development we have been carrying out during the
\nFirst Long-Term Development program cannot be distanced from the
\nstrategic environment and its evolution during that particular
\nperiod.<\/p>\n
The end of the Cold War led to the significant reduction of
\nthe world tension. Countries all over the world can give greater
\nattention to the problems of prosperity and quality of human
\nlife. Nations have been competing to improve their economies.<\/p>\n
The emphasis of relations among nations has shifted from
\npolitical to economic areas. The world attention can be
\nconcentrated more on the effort to develop a better and equitable
\neconomic order. This can be achieved through free unhindered
\nworld trade. With the conclusion of the Uruguay Round
\nnegotiations, the world enters a new chapter, namely free trade.<\/p>\n
The world is becoming more unified. These developments bring
\nabout both benefits and challenges. The unhindered flow of goods
\nand services will stimulate growth and lead to a greater
\nprosperity. But competitive skills are needed to benefit from
\nthese developments. Herein lies the challenge. This is the reason
\nwhy we have been trying hard to see to it that our economy can
\nprogress over the ups and downs of global events, by overcoming
\nobstacles that stand on the way.<\/p>\n
Economic globalization is followed by another trend, namely
\nregional economic cooperations. The European Community and North
\nAmerican countries have developed them. We too have long
\nestablished economic cooperation in ASEAN.<\/p>\n
In such a world evolution, there is every possibility the
\nadvanced countries become more advanced and the underdeveloped
\nbecome more underdeveloped. Even today there is a growing number
\nof Third World countries which have debt problems that stifle
\ntheir economies and hamper a sound growth.<\/p>\n
In this connection, I would like to appeal to creditor
\ncountries and international financial institutions to reduce
\nsubstantially the bilateral, multilateral and commercial debts so
\nas to constitute a meaningful relief. There must be a permanent
\nsolution to the debt problem in order that debtor countries do
\nnot have to repeatedly deal with it. The solution must be in such
\na manner that the countries concerned can truly start their
\ndevelopment again.<\/p>\n
In these past few days, a Ministerial Meeting of Non-Aligned
\nCountries on Debt and Development was being held in Jakarta.
\nParticipants to the meeting are together with us here in this
\nhall and they will also attend the highlights of the
\ncommemoration of our Independence Proclamation Day in front of
\nthe Independence Palace tomorrow morning.<\/p>\n
With this meeting, Indonesia does not intend to take over the
\ntask of solving the debt problems of the developing countries.
\nThe meeting is aimed at exchanging ideas and experiences on debt
\nand development. The common understanding in the meeting will
\nhopefully pave the way to a comprehensive and permanent solution
\nto the debt and development problems.<\/p>\n
The advanced countries are trying to arrange the global
\neconomy by themselves. However, the world is undoubtedly far
\nbigger than just the advanced countries. More than two-thirds of
\nthe world population actually live in the developing countries.<\/p>\n
On account of this fact the Non-Aligned Movement has agreed to
\npromote economic cooperation, mobilize solidarity and forces so
\nthat developing countries are not being left even further behind.
\nThe approach adopted by the Non-Aligned Movement is cooperation
\nand partnership, not confrontation. This is the reason that along
\nwith the cooperation amongst fellow developing countries or
\nSouth-South cooperation, the Non-Aligned Movement appeals to the
\nadvanced countries to participate in the endeavors by the
\ndeveloping countries in helping each other to raise the standard
\nof their prosperity.<\/p>\n
An example of cooperation involving advanced and developing
\ncountries in one forum is the Asia-Pacific Economic Cooperation
\n(APEC). Next November we will have the honor to host an APEC
\nmeeting.<\/p>\n
The Asia-Pacific region has a very dynamic growth during the
\nlast decade and it is predicted that it has great potential to
\ngrow even faster in the future. In the summit meeting held last
\nyear in Seattle, the United States of America; APEC leaders
\nissued a statement for cooperation and address jointly the rapid
\nregional and global economic changes. Economic cooperation in
\nthis Asia-Pacific region draws great attention from all countries
\nin this region.<\/p>\n
Present in this hall are the people's representatives
\nresulting from the general election. In this hall, the People's
\nConsultative Assembly, as holder of the people's sovereignty,
\nholds its session to choose a President and a Vice President, as
\nwell as formulate the guidelines of state policy that must be
\nimplemented by its Mandatory, namely the President, in
\ndischarging his duties. Also in this hall the Government,
\ntogether with the House of Representatives, discuss and approve
\nlaws as guidance of our life as a country, nation and society,
\nbased on the constitution and laws. It is here too that the
\npeople's representatives supervise the operation of the
\nGovernment and development in compliance with the mandate of the
\nConstitution.<\/p>\n
What is happening here is a reflection of a great continuous
\nprocess in all stages and at all levels, namely a democratic
\nprocess. Beginning with the election of a Village Head, Regional
\nHead up to the President, it is the people who makes the
\ndecision. The people also determines the direction and goals of
\ndevelopment and methods on how to achieve these goals.<\/p>\n
All of this does not happen by itself. It is part of
\nnational development, namely political development. The
\ndevelopment priority has always been on the economic field, but
\nwe are aware from the very beginning that in the absence of a
\npolitical support it is impossible to carry out economic
\ndevelopment. The political support indicates two things. First,
\nthe creation of a political stability, and second, the people's
\nparticipation in the decision-making process, its implementation
\nand supervision.<\/p>\n
Political stability is a prerequisite for a smooth
\ndevelopment, without being harmed by upheavals. Political
\nupheavals prevented the people from concentrating their attention
\non development. Political upheavals do not bring a peaceful and
\ntranquil feeling, which is greatly needed to mobilize all
\nresources for development.<\/p>\n
Learning from our own history or experiences of other
\nnations, we are aware from early on the importance of national
\nstability as a basis for a successful development. Namely
\ndevelopment that stimulates growth for the people's just and
\nequitable prosperity. This is the essence of the Trilogy of
\nDevelopment as a development strategy and practical application
\nof Pancasila.<\/p>\n
We are aware from the beginning that development requires
\nthe participation of all groups, segments and parties of the
\ncommunity. This means that development needs democracy. The
\nexperience of many nations shows that without the full and
\nsincere participation of the people, without democracy, progress
\ncannot be achieved optimally. Many nations have in fact suffered
\nfrom setbacks because they fail to apply democratic principles in
\ntheir political and economic life. As far as we are concerned,
\nthe promotion of democracy is more than a mere necessity.
\nDemocracy is a constitutional mandate. The founding fathers of
\nour republic have indicated to us the road to democracy that we
\nhave to follow. Our democracy is manifested by the
\nrepresentatives who hold mutual consultation to arrive at a
\nconsensus and guided by wisdom.<\/p>\n
Political stability and democracy are closely intertwined.
\nWe do not want a forced political stability nor on account of the
\nlack of alternatives. Political stability is for the interest of
\nus all. Solid political stability is the application of a sound
\nand fresh democracy. Strong political stability is established
\nbecause of the support of the people at large.<\/p>\n
Political stability does not mean defending outdated values
\nor preserving the status-quo.<\/p>\n
We do not need a static political stability but a dynamic
\none instead. This opens the way to further reform that produces
\neven stronger political stability. We have initiated this
\nreformation since the birth of the New Order, more than 25 years
\nago. Reform requires an open atmosphere. Over the years the
\nopenness has been gradually discernable. New and fresh ideas and
\nvalues are emerging and become the subjects of open and thorough
\ndiscussion, taking the good aspects as part of the nation's
\npolitical culture. However, we must strongly reject and avoid
\nthose which are unsuitable to our identity and the essence of
\nnationalism.<\/p>\n
What we really need is a responsible openness.<\/p>\n
Our nation is so diverse. The history of our development is
\nstill young. This makes us vulnerable, especially against
\ndivisive elements. Openness does not mean unlimited freedom. Even
\nworse, freedom to be hostile, pitting one party against another
\nand unconstitutionally imposing one's ideas.<\/p>\n
Differences of opinion are one of the characteristics of
\ndemocracy. We must respect every opinion--even though
\ndifferent--as part of fundamental human rights. But as a state
\nunder the law, even democracy has its rules. These are stipulated
\nby the Constitution and elaborated further in various laws, as
\nlegal products which are in compliance with the people's will.
\nWithout rules and without their observance, what will emerge is
\nanarchy, not democracy.<\/p>\n
Any political aspirations are justifiable as long as they
\nare presented through democratic and constitutional means.<\/p>\n
National stability definitely requires a peaceful and orderly
\natmosphere. In this respect the Indonesian Armed Forces (ABRI)
\nplay quite a prominent role, not only as a defense and security
\nbut also as socio-political forces. The Armed Forces as
\nstabilizer and dynamist of development has carried out its task
\nsatisfactorily. It has never abandoned its essence as
\nindependence soldier who come from the people, fight for the
\npeople, together with the people. During five REPELITAs, the
\nfunds allotted for the development of the Armed Forces have been
\nvery limited. Compared to other countries, especially if we look
\nat the size of the population and the vastness of the territory
\nthat have to be defended and secured, the budget allocated for
\nthe armed forces is extremely small. In fact, among ASEAN
\nmembers, the budget for our armed forces is relatively the
\nsmallest. However, despite such a condition the task to defend
\nand secure the nation's sovereignty, cohesion, territorial
\nintegrity, people's safety and development has been carried out
\nwell. With limited budget the Indonesian Armed Forces could still
\ndevelop itself as a formidable, authoritative and strongly
\nresilient force. The Armed Forces have gone through a process of
\nintegration and consolidation and it is now becoming a modern,
\ndependable and effective force. The Indonesian Armed Forces have
\nalso participated in the efforts of the community of nations to
\nkeep together peace in various parts of the world.<\/p>\n
Development in the legal field has also had our great
\nattention. The Constitution sets forth that Indonesia is a state
\nbased on law. Therefore, the laws play a central role in our life
\nas a nation. We are aware of the importance of the role of the
\nlaw as markers along the road to build the nation that offers the
\nfeeling of peace, certainty and justice. We have made many
\nefforts to achieve this goal.<\/p>\n
In line with the dynamic political stability, development
\nrequires economic stability. We can see the result like, among
\nother things, the inflation which has been kept under control.
\nEconomic stability is also reflected by a sound balance of
\npayments. The ratio between current account deficit and national
\nproduct so far has always been kept at around 1.5 to 3.5
\npercent. Foreign exchange reserves have always been available for
\napproximately five-month import.<\/p>\n
Such well-maintained economic stability enables the promotion
\nof activities in all sectors and regions. The result is a
\nrelatively high economic growth during these last 25 years.<\/p>\n
The economic growth rate during the First Long-Term
\nDevelopment program reached an annual average of 6.8 percent,
\nalthough there were years where the growth was slow. The growth
\nwas much faster than the population growth which stood at an
\nannual average of 2.32 and 1.97 percent respectively for the
\nyears 1971 - 1980 and 1980 - 1990. In fact, it went down further
\nin 1993 to 1.66 percent. As a result, the people's standard of
\nprosperity continued to improve.<\/p>\n
We have succeeded in increasing the national product.
\nEspecially its growth during REPELITA V was adequately high,
\nreaching an annual average of 6.9 percent. This figure is far
\nhigher than the goal set for REPELITA V at five percent
\nannually. It was also above the average growth rate for the
\nentire First Long-Term Development program.<\/p>\n
The industrial sector has become the prime mover of
\ndevelopment. The industrial growth during the First Long-Term
\nDevelopment program reached an annual average of 12.4 percent.
\nThe target set for REPELITA V was 8.5 percent annually. And yet
\nwe have attained an average annual growth of 10.2 percent. In the
\nmeantime, during the First Long-Term Development program the
\nagricultural sector has grown to an annual average of 3.6
\npercent, a relatively high rate of growth for the agricultural
\nsector. The major contribution to the agricultural growth was the
\nself-sufficiency in rice in 1984. We have been able to maintain
\nthis self-sufficiency in a dynamic manner until now, and it
\nserves as a solid foundation for subsequent development stages.<\/p>\n
The industrial sector has played an increasingly important
\nrole in the overall national production: from 9.2 percent in 1969
\nto 22.3 percent in 1993. This sector has surpassed the
\nagricultural sector since 1991. The contribution of the
\nagricultural sector to the GDP in 1969 reached almost half or
\n49.3 percent. In 1993, its role has diminished to 18.5 percent.<\/p>\n
Parallel with the changes in the structure of production,
\nthere was also some changes in the structure of employment
\nopportunities from agricultural to industrial and service
\nsectors. In 1971, the agricultural sector employed 64.2 percent
\nof the entire work force. In 1990, the number of workers in the
\nagricultural sector declined to 49.9 percent. The number of those
\nworking in the industrial and service sectors has become higher
\ncompared to those in the agricultural sector. Changes also took
\nplace in household activities. In 1983, the number of households
\ninvolved in the agricultural sector was about 60.5 percent.
\nWhereas the number went down to 51 percent in 1993.<\/p>\n
Another important structural change in Indonesia's economy is
\nits declining dependence on oil. The contribution of the oil and
\ngas sector to the national product in 1970 was about 18 percent
\nand rose to around 24 percent 1981. Its contribution started to
\ndecline since 1981, after greater activities took place in the
\nnon-oil\/gas sector. In 1993, the share of oil and gas sector in
\nthe national product has declined to 10.8 percent.<\/p>\n
Our economic growth -- especially in the industrial sector --
\nwas made possible by higher industrial capabilities. Our
\nindustrial products can compete in the international markets. By
\nthe end of REPELITA V there were 400 types of industry that were
\ndeveloped. About 4,000 kinds of our industrial commodities
\npenetrated the world markets, starting from handicrafts to high-
\ntech industrial products like airplanes.<\/p>\n
The non-oil\/gas export clearly became the principal strength
\nof our economic growth, particularly during the last two
\nREPELITAs in the First Long-Term Development program, primarily
\nexport of manufactured goods.<\/p>\n
Since the beginning to the end of the First Long-Term
\nDevelopment program, the total export value has risen 42 times or
\nan average of 15.9 percent annually. When our export value in
\n1968 was a mere US$ 872 million, it jumped to US$ 36.5 billion in
\n1993 - 1994. During the same period the export value of non-
\noil\/gas has gone up even higher, namely to approximately 48 times
\nor an average increase of 16.5 percent annually. At the end of
\nthe First Long-Term Development program, non-oil\/gas export
\nconstituted 74 percent of the entire foreign exchange revenues.
\n63.4 percent of this export consisted of manufactured goods.<\/p>\n
The size of the export share reflects the economic growth.
\nWhen in REPELITA I the share of total export in our economic
\ngrowth was at an average of 31 percent annually, in REPELITA V
\nit has gone up to an average of about 49 percent annually.<\/p>\n
What is most encouraging of the developments in the export
\nsector is the role of the small-scale industries. In 1993, the
\nsmall-scale industries contributed 10.3 percent of the total
\nexport of industrial commodities. In REPELITA V, the export value
\nof small-scale industries has grown quite substantially, namely
\nby an annual average of 22 percent.<\/p>\n
The growth of the cooperatives as the people's economic forum
\nhas also been heartening. This must be constantly intensified in
\norder to enhance its quality and role. Before REPELITA I we had
\nabout 9,300 cooperatives. By the end of REPELITA V, the number
\nhas grown to 42,000.<\/p>\n
We are able to make this progress because we succeeded in
\nconstructing the supporting infrastructures. They have become
\nmore extensive, diversified and the quality of its services
\nimproved.<\/p>\n
The development of power generation has multiplied many times
\nover. This must continue to be further intensified in order to
\ncatch up with the extremely rapid growth of the industrial
\nsector. The provision of electricity has also improved the
\ngeneral well-being. Back in 1971, there were only six out of 100
\nhouseholds that had electricity. Today, more than half of
\nhouseholds are enjoying electricity. Almost half of villages are
\nsupplied with electricity that stimulates the economy and light
\nmore than 30,000 villages.<\/p>\n
During the First Long-Term Development program, the telephone
\nexchange boards have multiplied 38 times. The telephone density
\nhas also risen from 15 per 10,000 persons at the beginning of
\nREPELITA I to 159 per 10,000 persons at the end of REPELITA V.<\/p>\n
The communication network has also grown rapidly. In the land
\ncommunication, at the end of the First Long-Term Development
\nprogram the roads extended to more than 244,000 kilometers;
\nconsisted of national, provincial, district and urban roads. We
\nare also building small roads leading to remote rural areas. The
\nsmooth transportation is also sustained by and increasingly
\nconsolidated means. The number of motor vehicles has increased by
\nmore than 20 times during the First Long-Term Development
\nprogram.<\/p>\n
Sea communication is extremely vital for Indonesia as an
\narchipelago state. During the First Long-Term Development program
\nvarious harbor facilities were built and expanded in 656
\nlocations and most of them are in remote areas. At the end of
\nREPELITA V, there were three harbors functioning as container
\nports, namely Tanjung Priok, Belawan and Tanjung Perak. In order
\nto sustain smooth foreign trade, 127 harbors were designated as
\nexport harbors, 55 of them are located in the eastern part of
\nIndonesia, so that they can export directly and thus raises the
\ncompetitiveness of the local export products.<\/p>\n
Apart from sea communication, our geographical situation
\ndictates us to develop air communication. During the First Long-
\nTerm Development program, the number of airports has increased
\nfrom 108 to 146, whereby 88 of them serve the isolated areas.<\/p>\n
The construction of irrigation network plays an important role
\nin raising agricultural production, especially to attain food
\nself-sufficiency. During the First Long-Term Development program,
\nwe have built new irrigation networks providing water to almost
\n1.7 million hectares of paddy-fields and rehabilitated existing
\nirrigation network of around 2.9 million hectares. As a result,
\nwe have also consolidated the irrigation for farmlands.<\/p>\n
We have extended the provision of clean water reaching 80
\npercent of our urban population and 50 percent of the rural
\npopulation. In the beginning of the First Long-Term Development
\nprogram, only 20 percent of our urban population enjoyed clean
\nwater.<\/p>\n
The welfare improvement is also evident in the sector of
\nhousing and settlement. During the First Long-Term Development
\nprogram, we have built about 856,000 simple and very simple
\nhouses. We have renovated around 558,000 houses scattered in more
\nthan 37,000 villages.<\/p>\n
Between the years 1971-1990, the work force has risen to 32.6
\nmillion. At the same time, development has succeeded in creating
\nalmost 34 million jobs. Consequently, the number of job-seekers
\nhas declined from 3.6 million in 1971 to 2.3 million in 1990. The
\nstructure of work force has also shifted to sectors which have
\nhigh value-added, that is from the agricultural to industrial and
\nservice sectors.<\/p>\n
Today, practically almost all children between 7-12 years old
\nare following elementary education. At the start of the First
\nLong-Term Development program, there were only four out of 10
\nchildren who attended elementary school. The secondary school
\npupils -- including the equivalent Islamic schools -- are now
\nnumbering seven million, covering more than half of the 13-15
\nyears old. This number is almost six times higher than at the
\nstart of REPELITA I. The number of high school pupils by the end
\nof the First Long-Term Development program reached 3.8 million, a
\nsubstantial increase from only about 480,000 in 1968. If the
\nIslamic high school pupils are also included, the number reaches
\n4.2 million, or more than one-third of adolescents between 16-18
\nyears old. In the higher education, including religious
\nuniversities, the number of students has risen from around
\n156,000 in 1968 to 2.3 million during the 1993-94 scholastic
\nyear. This means more than 10 percent of boys and girls between
\n19-24 years old are studying in universities.<\/p>\n
The number of over 10 years old who are illiterate has
\ndecreased significantly, from more than 39 percent at the
\nbeginning of the First Long-Term Development program to around 14
\npercent by the end of REPELITA V.<\/p>\n
In 1967, the life expectancy was 45.7 years. Now, it has
\nrisen to 62.7 years. During the same period, the infant mortality
\nrate has declined from 145 to 58 per 100 childbirths. The
\nprovision of energy food has risen from 2,035 kilo calories in
\n1968 to 2,991 kilo calories per person\/day in 1992. The increased
\nenergy food was accompanied by greater supply of protein, fat and
\nother nutritious sources.<\/p>\n
The improved public health and nutrition is closely linked
\nwith the improvement of health services to the public at large.
\nDuring the 1968-1993 period, the number of doctors has increased
\nfrom around four to almost 17 doctors serving 100,000 persons.
\nHealth services through the Public Health Centers have reached
\nall corners of the country, now numbering close to 7,000. In
\naddition, they are also supported by Auxiliary and Mobile Public
\nHealth Centers.<\/p>\n
Another important development that took place during the
\nFirst Long-Term Development program was the enhanced role of
\nwomen. The number of women who enjoyed education rose by 38
\npercent between the years 1980 and 1990. The number of women
\nworkers has increased by six percent or more than double the
\npercentage of the increase of men workers during the same period.
\nThrough the Family Welfare Movement (PKK) and Integrated Service
\nPosts, women played a prominent role in improving the people's
\nwell-being by way of raising their health standard and nutrition,
\nespecially in the rural areas.<\/p>\n
Development is not limited to physical things alone, but it
\nalso covers all aspects of life. We believe the right development
\nis the development of complete individuals and the whole of the
\nsociety. For this reason, therefore, we give full attention to
\nthe development of religion, so that religious followers can
\nperform their religious worship as well and easy as possible.<\/p>\n
The cultural aspect of development has never been neglected.
\nWe see development as a process of cultural changes, from
\nignorance and backwardness to progress. Thus, development also
\nrequires the promotion of cultural values that sustain the
\nprocess of reform and modernization, without abandoning the
\nfundamental values that mold Indonesia's national identity.<\/p>\n
One of the important aspects of national development is
\nregional development. Development is not centralized and carried
\nby the central government alone. Development is also implemented
\nby all regions.<\/p>\n
It is precisely through the regional development that the
\nparticipation, initiative and creativity of the people are being
\nencouraged to develop by capitalizing on the available resources
\nand potentials in the regions. To distribute regional development
\nresources and, at the same time, to support the regional effort
\nin developing and mobilizing development resources in the
\nrespective regions, assistance is being given from the State
\nBudget.<\/p>\n
This assistance is included in the INPRES program, the size of
\nwhich continues to be larger. Furthermore, the greater portion of
\nthe land and building tax is returned to the regions.<\/p>\n
The regional development is supported by transmigration. The
\nmovement of people to outside Java through the transmigration
\nprogram has to date reached around eight million persons.
\nCompared to the number of people who moved to Java, those moving
\nout of Java is still larger. The transmigration program has
\nstimulated regional economic growth, raised productivity and
\ncreated new employment opportunities in the regions.<\/p>\n
Most of the provinces in the eastern part of Indonesia have
\nregistered high growth rate. This is very encouraging. The latest
\ndata on regional gross domestic product demonstrates it. During
\nthe first three years of REPELITA V, out of the 13 provinces
\ncategorized as the eastern part of Indonesia -- including
\nprovinces in Kalimantan -- 10 of them have grown above the
\nnational average. Four out of five provinces that have an average
\ngrowth rate of above nine percent are actually located in the
\neastern part of Indonesia. These provinces are: Southeast
\nSulawesi with an average growth of 12.4 percent, East Timor 9.8
\npercent, Irian Jaya 9.7 percent and Central Sulawesi 9.3 percent.
\nThis shows that the equitable distribution of intra-regional
\ndevelopment is going on.<\/p>\n
We have carried out many activities in REPELITA V to enhance
\nthe environment. We have, among other things, rehabilitated
\ncritical lands and preserved forests totaling 44 million
\nhectares, reduced the pollution of 32 major rivers, improved the
\nsanitation of cities and developed the systems and methods of
\ndevelopment that do not harm the environment. The awareness of
\nthe people about the importance of the environment has been
\ngrowing. The active participation of the people to preserve the
\nenvironment continues.<\/p>\n
Our development has apparently touched all segments of the
\nsociety. The results of development have been enjoyed by the
\npeople at the lowest economic rank. This is clearly evidenced by
\nthe higher income of the poor population. The yardstick is the
\ndeclining number of people who are living below the subsistence
\nlevel.<\/p>\n
In 1970, the number of poor people was estimated to be around
\n70 million or 60 percent of the whole of the Indonesian
\npopulation. In 1993, it was substantially reduced to 25.9 million
\nor 13.7 percent of Indonesia's total population. Whereas, in fact
\nduring the same period Indonesia's population has increased by
\naround 73 million.<\/p>\n
We are highly encouraged that the number of the poor has
\ndeclined very substantially. Yet we are aware the remaining
\nnumber is still quite big.<\/p>\n
We have also noted that the rate of decline of the number of
\nthe poor is slowing down. We can draw the conclusion that the
\nremaining poor people are those who have the lowest economic
\npotential. These brothers and sisters of ours are living in
\nremote areas and become more concentrated in pockets of poverty.<\/p>\n
In order to overcome this poverty problem, we have launched a
\npoverty alleviation program specifically directed to the poor.
\nDuring the final year of REPELITA V, efforts were made to
\nidentify villages that on account of their serious backwardness
\nbecame pockets of poverty. After improving the criteria and
\nevaluation system several times, we finally came to the
\nconclusion that there are 20,633 villages which need special
\nattention with a view to alleviating poverty. This is the reason
\nwhy starting with REPELITA VI, we are developing the Least-
\nDeveloped village INPRES. The objective is to directly overcome
\npoverty in these least-developed villages.<\/p>\n
The achievement we have made demonstrated that we have
\nsucceeded in attaining the goals of the First Long-Term
\nDevelopment program, namely the fulfillment of the people's basic
\nneeds and the creation of a balanced economic structure. We have
\nbeen carrying out development by subscribing consistently to the
\nTrilogy of Development. We have created economic stability and
\nmanaged its consolidation. We have achieved an adequately high
\neconomic growth. We have carried out development resulting in the
\nenhancement of the people's well-being in a more equitable
\nmanner.<\/p>\n
In the Second Long-Term Development program we want to create
\nan advanced, prosperous and self-reliant society in a harmonious
\nliving surrounding. We translate this goal by setting up various
\ntargets. The REPELITA VI document contains the development
\ntargets of the Second Long-Term Development program and REPELITA
\nVI in particular, as well as the strategy on how to reach them.<\/p>\n
One of the most crucial targets is the quadrupling of the real
\nvalue of the per-capita income of Indonesians by the end of the
\nSecond Long-Term Development program. To this end, we must have
\nan economic growth rate with an average of over seven percent
\nannually. Various sectors must mutually support and reinforce
\neach other. The industrial sector, that we rely upon, must have a
\nrapid growth.<\/p>\n
The growth of the industrial sector at the beginning of the
\nSecond Long-Term Development program -- namely during the current
\nREPELITA VI -- must consolidate further the existing industrial
\nstructure. Our industry must make the best possible use of our
\ncomparative advantages, namely the abundant natural and human
\nresources. But this alone is not sufficient. The foundation of
\nour industry must also be reinforced and strengthened. Its
\ntechnological contents must be upgraded, so as to produce goods
\nwith high value-added and, at the same time, strongly
\ncompetitive. We have to improve the design and engineering
\naspects. We have to strengthen the downstream industry, which so
\nfar has been the mainstay of our export and it must also be
\nlinked with the intermediate and upstream industries. This is the
\npath we have to follow in developing a dependable and self-
\nsupporting national industry.<\/p>\n
We have chosen industrialization as the main road for
\neconomic growth. This selection is not without reason. We are
\nhoping that it is precisely the industrial sector that will
\nproduce greater value-added growth and absorb a great number of
\nhighly productive workers.<\/p>\n
This certainly does not mean that we neglect the
\nagricultural sector, which continues to be important in our
\neconomy. The sufficient supply of foodstuffs is very essential
\nfor a nation with large population like Indonesia. This remains
\nthe primary task of the agricultural sector. In this respect, we
\nare aware that although we have made much progress, the
\nagricultural development continues to face big obstacles.<\/p>\n
We ought to shift manpower from the agricultural to other
\nsectors, especially the industrial sector. So far, the income of
\nworkers in the agricultural sector is lower than those in other
\nsectors.<\/p>\n
The process of transferring manpower from the agricultural
\nto industrial sector usually occurs as an urbanization process.
\nIt also creates problems, because the urban areas are not always
\nprepared to accommodate the too rapid flow of additional
\npopulation. Therefore, the strategy to overcome this problem is
\nby developing industry in the rural areas, so that
\nindustrialization does not always have to mean urbanization. This
\nis the reason why we should develop immediately agro-industry and
\nagro-business, especially in the rural areas.<\/p>\n
For this purpose, it requires hard work and serious effort
\non our part. Above all, it needs the participation of a broader
\nsegment of the population and better-qualified people.
\nConsequently, the development of human resources receives a great
\nattention in the Second Long-Term Development program. For this
\npurpose, we have to develop the correct development programs in
\nall sectors. We ought to continue and intensify our institutional
\ndevelopment-- whether economic, social, political or even
\ngovernmental --in order to pioneer and support the reformation
\nand modernization of our society.<\/p>\n
Apart from our target for growth, we have a clear and firm
\nobjective for an equitable distribution. We are planning to
\nfundamentally overcome the issue of poverty in two REPELITAs. We
\nwill stimulate faster the development of the least-developed
\nareas. We want to build a strong and self-reliant small and
\nmedium-size businesses as an effort to raise the equitable
\ndistribution of business and build a dependable business world.
\nWe must build the cooperatives as the people's effective economic
\nforum.<\/p>\n
We shall continue the deregulation and debureaucratization.
\nThe goal is to prepare for a highly competitive global economy
\nthat can survive in the increasingly unified and competitive
\neconomy. Deregulation and debureaucratization certainly do not
\nmean setting up a liberal economic system that allows free
\ncompetition. The 1993 Guidelines of State Policy explicitly
\ndemands us that this should be avoided.<\/p>\n
Consequently, deregulation and debureaucratization, as well
\nas other incentives to raise our economic competitiveness must be
\nfollowed-up, so that our economy stays on course in realizing the
\naspirations of the proclamation of independence. All the efforts,
\nresources and potentials, as well as policies must lead to an
\neconomy imbued with justice. We must of course take into account
\nthe fundamental economic principles. However, we also have to
\nstrike a better balance of opportunities and ensure that our
\neconomic system brings about prosperity to everybody.<\/p>\n
These are the great tasks of our development in the days to
\ncome.<\/p>\n
Window A: Openness does not mean unlimited freedom. Even worse,
\nfreedom to be hostile, pitting one party against another and
\nunconstitutionally imposing one's ideas.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/great-tasks-face-the-nation-in-the-next-25-years-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}