Growth must hit 7% to reduce poverty, says Dorodjatun<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Indonesia needs to increase economic growth by at least 7 percent
\nin order to alleviate the state of poverty under which 38 million
\npeople live, the economic minister said on Friday.<\/p>\n
Coordinating Minister for Economic Affairs Dorodjatun
\nKuntjoro-Jakti said economic growth should reach 7 percent
\nannually to enable the country to absorb the new work force of
\n2.5 million each year.<\/p>\n
However, he admitted that to increase the current rate of
\naround 3 percent to 7 percent would not be feasible for several
\nyears, due to the size of the population and the economy, which
\nhas not yet recovered.<\/p>\n
\"This year, we are going to reach 4 percent. Next year, if the
\nworld economy improves, we will be able to reach 5 percent,\" he
\nsaid.<\/p>\n
Besides increasing the economic growth rate, poverty could
\nalso be reduced by creating new employment opportunities,
\nfocusing on socio-economic policies, and adapting poverty
\neradication policies to reflect the real conditions in the
\nregions.<\/p>\n
Dorodjatun, speaking at the \"Free from Poverty\" forum, did not
\nsay what concrete steps the government would take to alleviate
\npoverty.<\/p>\n
Data from the Central Statistics Agency (BPS) shows that the
\nnumber of people living in poverty reached 37.1 million in 2001
\nand increased to 38.5 million last year.<\/p>\n
According to the International Labor Organization (ILO),
\npeople living under the international poverty standard earn less
\nthan US$2 per day, which puts 110 million Indonesians under the
\npoverty line.<\/p>\n
Dorodjatun said once Indonesia managed to achieve the desired
\ngrowth rate, the government and businesspeople should distribute
\ngrowth fairly.<\/p>\n
As for now, the banking industry should channel more loans to
\nsmall enterprises, particularly those in villages, he said, while
\nthe stable macroeconomic condition should help businesses create
\njobs.<\/p>\n
At the same forum, economist Revrisond Baswir from Yogyakarta-
\nbased Gadjah Mada University urged the government to seriously
\ncombat corruption and free up more funds for the poor. He also
\ncriticized the government for not taking serious measures against
\ncorruption.<\/p>\n
Revrisond also lamented that the government had shifted the
\nresponsibility for reducing poverty to the market mechanism.<\/p>\n
\"The government should channel more money to the agriculture
\nsector so as to improve the income of the poor,\" he said.<\/p>\n
Trade union leaders shared similar views, saying the
\ngovernment should ease the process of providing loans to small
\nenterprises and farmers.<\/p>\n
Meanwhile, businessman Djimanto from the Indonesian Employers
\nAssociation (Apindo) agreed that macroeconomic stability was a
\nkey factor to reducing poverty, as was improving the investment
\nclimate.<\/p>\n
Friday's tripartite forum, sponsored by the ILO, was held to
\nmark the International Day for the Eradication of Poverty and to
\ndiscuss the Poverty Reduction Strategic Paper (PRSP).<\/p>\n
The paper was drafted to meet requirements set by the World
\nBank and the International Monetary Fund on 80 indebted
\ncountries, including Indonesia, in order to obtain more loans
\nfrom international financial institutions.<\/p>\n
The PRSP, which is expected to be finished in June next year,
\nwill outline the spirit of the government's programs in reducing
\npoverty.<\/p>",
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