Greater efficiency called for<\/p>\n
JAKARTA (JP): Indonesia needs to improve efficiency and the
\ntransparency of administration nationwide to cope with its
\nstructural economic problems, Minister of Finance Mar'ie Muhammad
\nsays.<\/p>\n
Speaking at the fourth annual meeting of the Indonesian Moslem
\nIntellectuals Association (ICMI) here on Saturday, Mar'ie noted
\nthat the drive should target not only government institutions but
\nalso the private sector.<\/p>\n
The minister said the country needs more public accountability
\non the part of its leadership than ever before to ensure the
\nefficiency and transparency of the national economy.<\/p>\n
\"There is a growing need for public accountability as our
\nmiddle class is getting stronger and stronger. And we know what
\nvalues they incorporate,\" Mar'ie contended.<\/p>\n
He asked all leaders in the country to accustom themselves to
\npublic accountability and be ready to be criticized. \"If not,
\ndon't become leaders,\" he said.<\/p>\n
Mar'ie then described the structural problems faced by the
\nnation, which have been caused by various factors, including a
\nhigh cost economy, unfair competition among business people and
\ndisparities between the rich and the poor, between urban and
\nrural areas, as well as between the western and eastern parts of
\nthe country.<\/p>\n
The high cost economy has been caused partially by mark-up
\npractices -- artificially raising the costs of projects above
\ntheir real values -- over the last several years and a number of
\ninefficient trade regulations, Mar'ie said.<\/p>\n
Bill<\/p>\n
He said the government is preparing a bill on fair competition
\nto deal with unhealthy business practices. The bill is to be
\nsubmitted to the House of Representatives later this year for
\ndeliberation.<\/p>\n
In order to come to grips with the problem of the widening
\ndisparity between the rich and the poor, Mar'ie explained that
\nthe government has designed and applied many measures to
\nstrengthen the businesses of small-scale enterprises and
\ncooperatives, even though not all of them are successful.<\/p>\n
The measures include the introduction of special credit
\nfacilities for small-scale enterprises, the establishment of
\nventure capital companies, the allocation of a certain portion of
\nstate companies' profits for small enterprises and partnership
\nbetween large and smaller business entities.<\/p>\n
Speaking on the same occasion, Minister of National
\nDevelopment Planning Ginandjar Kartasasmita warned that such an
\neconomic gap is the most dangerous threat to the nation's unity.<\/p>\n
\"Factors which may disrupt our stability and unity as a
\nnation, in my personal opinion, are no longer those related to
\ndeep-rooted cultural attitudes and traditions, such as the
\nbeliefs of various religious and ethnic groups, but are now
\nrelated to the economic gap,\" Ginandjar told the meeting which
\nwas attended by ICMI executives from across the nation and
\nrepresentatives from Africa.<\/p>\n
He explained that the problem of \"primordialism\", a term which
\nhe used in the context of deep-rooted cultural attitudes, has
\ndiminished, but that jealousy among the various groups in
\nsociety, especially that of poorly-paid laborers towards the
\nhigher income segments of society, has emerged as a result of the
\neconomic gap.<\/p>\n
\"If these laborers are organized, it will be dangerous,\"
\nGinandjar warned.<\/p>\n
The draft state budget for 1995-1996 fiscal year, which begins
\nin April, is meant to cope with the danger of the economic gap by
\nputting more weight on the equal distribution of wealth than on
\neconomic growth and stability, he said.<\/p>\n
Out of the planned rupiah spending of Rp 19 trillion (US$8.6
\nbillion) for development programs, Rp 7.3 trillion, or 38.6
\npercent, will be allocated for local administrations for their
\nown development projects, the minister said.<\/p>\n
The government is also committed to increasing the amount of
\npoverty alleviation funds going to 22,097 least-developed
\nvillages by 21.7 percent to Rp 473.7 billion, of which some 70
\npercent will go to villages outside of Java.<\/p>\n
Ginandjar, also chairman of the National Development Planning
\nBoard, said that the draft budget pays special attention to
\neastern Indonesia in order to lessen the disparity between the
\nwestern and eastern parts of the country.<\/p>\n
For example, out of the planned irrigation spending, for which
\na 21 percent budget rise to Rp 2.04 trillion is expected, 60.8
\npercent will be used to finance projects outside of Java.<\/p>\n
The government will also devote its attention to building
\nroads and ports in eastern Indonesia.(rid)<\/p>",
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