RI policy commended<\/p>\n
World Bank President James Wolfensohn's high praise on Monday
\nfor Indonesia's economic growth pattern as a model for developing
\ncountries was not meant to be a diplomatic nicety. He simply
\nreiterated the results of the overall assessment of Indonesia's
\neconomy by the Washington-based multilateral development bank.
\nCertainly the World Bank, with a large office here, is the most
\nseasoned, independent analyst of the country's economy.<\/p>\n
Indonesia has always been under the organization's tight
\nscrutiny because the country is one of its largest borrowers.
\nMoreover, the World Bank is the opinion leader for and chair of
\nIndonesia's creditor consortium, the Consultative Group on
\nIndonesia which meets annually in Paris.<\/p>\n
Wolfensohn's remarks at the Indonesia Summit hailed the
\ngovernment's prudent macroeconomic management because it is
\nstrongly based on the policy fundamentals which the World Bank
\nhas always prescribed for developing nations. He greatly endorsed
\nIndonesia's policy, which emphasizes human resources, basic
\ninfrastructures, the financial system and the environment.<\/p>\n
Indonesia's macroeconomic policies -- notably after the start
\nof the massive economic and bureaucratic reform process in May
\n1985 -- have indeed succeeded in fueling a steady, robust growth
\nof the economy. The series of deregulation measures taken over
\nthe last decade have significantly improved the business climate.
\nThe private sector has now become the locomotive of economic
\nexpansion.<\/p>\n
Nonetheless, let us not be lulled into complacency by the
\ninternational praise. The occurrence of poverty, though already
\nsharply reduced, remains high and the number of people living on
\nthe verge of poverty is still large. The gap between rich and
\npoor is tending to widen. The rates of unemployment and under-
\nemployment are very high. More worrisome, too, is the increasing
\nnumber of high school and university graduates among the
\nunemployed's ranks. The disparity in the stages of development
\nbetween the eastern and western parts of the country is striking.
\nThe dramatic progress in mass communications due to rapid
\ndevelopments in telecommunications has steadily raised the
\npeople's aspirations. The patience of those who remain outside
\nthe economic mainstream is being stretched to its limits.<\/p>\n
As the country increasingly interlinks itself with the global
\neconomy, the challenges for both policymakers and the business
\ncommunity have become tougher. Even the slightest mistake or
\npolicy inconsistency in some sectors could result in a severe
\npunishment by market forces.<\/p>\n
Among the biggest challenges is the slow pace of bureaucratic
\nreform, which has often impeded the implementation of economic
\nreform measures. In fact, bureaucratic procedures and regulatory
\nrequirements in Indonesia have now been singled out as one of the
\nlargest barriers to efficient, smooth investment operations. Many
\nare afraid that Indonesia could be the loser within the ASEAN
\nFree Trade Area in 2003 if the bureaucratic hurdles were not
\nsharply reduced.<\/p>\n
We should therefore take the international praise of our
\nimpressive economic performance as a measure of confidence
\nbuilding to help us in facing bigger future challenges.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-policy-commended-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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