Questions for our economists<\/p>\n
Dita Indah Sari
\nJakarta<\/p>\n
The debate over the pros and cons of the fuel price increase
\nhas begun to become dreary. Even though in many regions voices of
\nopposition can still be heard, the peak of the debate has already
\npassed.<\/p>\n
Unlike previous plans to increase the price of fuel, this time
\nthe polemic between economists in the mass media was both
\nextensive and open. The opinion pages of many newspapers were
\nfilled with articles criticizing each respective position. This
\nis a positive development, not just for the academic community
\nbut also for the general public, because the people were exposed
\nto and able to consider alternative thinking.<\/p>\n
However, separate from this, the debate that emerged in the
\nmass media and at seminars failed to touch upon a fundamental
\nsolution for our economy. It is true that the neo-liberal
\neconomic policies of the government have been subject to open
\ncriticism by many economists. The criticism of the continued
\ndependency upon the International Monetary Fund (IMF), for
\nexample, pressured the government to formally end its cooperation
\nwith the IMF at the end of 2003.<\/p>\n
There has also been no shortage of critics of other policies
\nthat are neo-liberal in orientation, such as the reduction of
\nimport tariffs, the removal of minimum taxes, privatization, the
\nbasic cost of unhulled paddy, the reduction of fertilizer
\nsubsidies, etc. However, once again, the solutions being offered
\nare partial and do not yet constitute an alternative packet that
\nis both structurally and operationally different from what has
\nbeen carried out up until now.<\/p>\n
One fundamental question that is often put forward is how to
\ntransform agrarian production in this country into a modern
\nagriculture industry. Changing the mode of traditional
\nagriculture with its low productivity will only be possible if it
\nis accompanied by growth in basic industry, which must be capable
\nof producing engines, fertilizer and seeds that can be accessed
\nby farmers at the lowest possible cost.<\/p>\n
The restructuring of national industry needs to be prioritized
\nin order to fulfill the needs of the rural sector, because it is
\nthis sector that has the highest rates of unemployment.<\/p>\n
Our economists have yet to put forward a clear plan of action
\nin relation to this. There was fierce protest over the removal of
\nfertilizer subsidies. However, the concept of national
\nindustrialization focused on the rural sector has not yet become
\na strong enough platform from which to challenge government
\npolicy (and that of their economists), which prefers to surrender
\nthe future of Indonesian farmers to the \"wisdom\" of the market.<\/p>\n
There has not been a concrete proposal as to how to maximize
\nexisting resources and potential in order to develop basic
\nindustry.<\/p>\n
The abandonment of two fertilizer factories in Aceh is a clear
\nexample of how the development of national industry has not been
\na priority for the government of Susilo Bambang Yudhoyono and
\nJusuf Kalla. What are the solutions being offered by economists
\nto resolve these problems?<\/p>\n
There also has not yet been a debate regarding how to overcome
\nthe problem of dependency upon imports, which constitutes the
\nmain structural problem of our nation's economy. Even though this
\ndependence has long been known as the cause of the high cost of
\nproduction, there has yet to emerge a clear alternative that
\nclearly articulates the steps that must be prioritized in order
\nto overcome this dependence.<\/p>\n
Successfully developing basic industry is the first step
\ntoward reducing our dependence upon imports. Material and
\ntechnological capital that we can produce ourselves is not only
\ncapable of reducing production costs to the point that they are
\ncompetitive, but in the longer term can also create a stronger
\nand more stable economic structure. Moreover, Indonesia is such a
\nrich country, filled with natural resources. Why have economists
\nnot objected to this export orientation on raw goods?
\nParticularly considering that raw good exports are followed by
\nthe import of consumer goods from overseas countries, which,
\nironically, get their raw materials from Indonesia.<\/p>\n
Is it necessary to limit the export of raw goods and
\nagricultural produce, so that these goods can be used to revive
\nnational industry? Is it necessary to limit natural gas exports
\nto Japan and South Korea in order not to disturb the national
\nfertilizer industry? If human capital is crucial for economic
\nproductivity, is it necessary to prohibit completely the
\nprivatization of the pharmaceutical industry, health care and
\neducation?<\/p>\n
Why is the State Logistics Agency (Bulog) only concerned about
\ndistributing and stabilizing the price of rice? What about the
\nother agricultural and manufacturing products? Who is responsible
\nfor protecting their markets and prices? Should labor flexibility
\nand the work contract system be maintained when there is no
\nsocial safety net for those who are fired or made redundant?<\/p>\n
There are many questions that have yet to be answered by our
\neconomists. Alternative ideas that oppose mainstream economics,
\nhowever, do not receive attention in the mass media. This is the
\nreality. However small the space for discourse may now be, it is
\ntime to clearly differentiate between the different concepts and
\ntypes of economic thinking.<\/p>\n
The battle between economists is the consequence of a
\nconstantly changing political situation, which forces people to
\nmake a choice. The people, in making a choice in accordance with
\ntheir own interests, need something to guide them. Without
\nalternative ideas, conveyed in their entirety, the people will
\nhave a difficult time imagining what this \"better Indonesia\" will
\nlook like.<\/p>\n
The writer is chairwoman of the Democratic People's Party
\n(PRD). She can be reached at ditadanburuh@yahoo.com.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/questions-for-our-economists-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}