50 years: Progress at hand, clear targets ahead

Following are excerpts from the provisional translation of President Soeharto's State Address delivered at the plenary session of the House of Representatives (DPR) on Aug. 16 on the occasion of Indonesia's 50th Independence Day on Aug. 17.

JAKARTA: Let us look back to reflect for a moment on our experience together since the Proclamation of Independence 50 years ago. And, at the same time, let us look ahead to the future with a horizon that penetrates beyond the 21st century.

During the first 20 years after the Proclamation of Independence, we passed through the War of Independence, revolutions and armed rebellions.

In this 20-year period, we suffered setbacks in various aspects of life, especially in the economic field. But the experience gained over those 20 years has served also as a very valuable asset for the continuation of our life as a nation. This very valuable asset of experience has brought awareness of the need for the unity and cohesion of the nation based on Pancasila.

As has been the case with other nations, we also have had to pass through the period of a war for independence and revolution before we could enter the era of development.

Indeed, we made total corrections of all of the mistakes committed in the past when we embarked on our era of development. But even with development, we did not cut our ties to history. We see development as a continuation of the struggle we waged during the periods of the War for Independence and revolution.

It is precisely through development that we want to realize the noble ideals that have motivated our national struggle in the past. This is the reason why we emphasize that development is the practical application of Pancasila.

When we entered the era of development, we still felt the old wounds inflicted by the controversies over the foundations of our state. We are relieved that after a long national dialog, after we have deeply reflected upon things, guided by our common will, we finally reached a consensus that Pancasila is the sole basic principle in our life as a society, a nation and a state.

Thus, we have closed together the door to any possible recurrence of such very fundamental ideological issues in our national life. The political structure at that time also showed some weaknesses as a legacy of the past.

With full patience and common awareness, we finally succeeded in simplifying our political structure by establishing three socio-political forces. Simultaneously, we made use of the presence of the Armed Forces of the Republic of Indonesia (ABRI), with its dual-function, as stabilizer and dynamic force, with a view to pushing through the development program which could no longer be postponed.

We continued to promote a dynamic national stability by the functioning of supreme and high state institutions, by periodically holding a general election every five years. We also continued to refresh a responsible democratic life and to exercise human rights as mandated by our Constitution.

This is the reason we have enjoyed the longest period of national stability and smooth development in our history since the Proclamation of Independence.

The journey of our nation in the future will occur in the midst of a world which changes rapidly, and which is sometimes filled with uncertainties. Our independent and active foreign policy, which was mandated by our predecessors from the early years of independence, is dedicated to serving national interests.

We are pleased that from the beginning our national interests have been in line with the interests of a just and civilized humanitarianism. The Preamble to our Constitution emphasizes that the Indonesian nation should participate in the creation of a world order based on independence, abiding peace and social justice.

In the early years of independence, our diplomacy was carried out hand-in-hand with the armed struggle that finally brought about the international recognition of the independence we proclaimed.

The long journey of our foreign policy has been marked by, among others, the Asia-Africa Conference as the embryo of the inception of the Non-Aligned Movement, by the struggle to return Irian Jaya into the fold of the Republic of Indonesia, by the establishment of ASEAN, by the struggle for the Archipelago Principle and the recognition of the principle of an island state in the UN Law of the Sea Convention, by the peaceful, impartial and comprehensive solution of the Cambodian issue, by the selection of Indonesia as the host of the APEC leaders last year and its election as a non-permanent member of the UN Security Council this year. Through various fora, especially in its capacity as Chairman of the Non-Aligned Movement, Indonesia has reactivated South-South and North-South cooperation.

After a quarter of a century of the implementation of development, we have achieved a relatively high economic growth, accompanied by an equitable distribution of development programs and the results of the gains thus achieved, which are greater and more expansive than ever before.

In the early decade of Indonesia as a nation, our knowledge about statistics on various conditions was very limited. In fact, that was so even when we started our development programs 25 years ago. It has been only during these last 25 years that we have developed a reliable and modern information and statistics system. And this was carried out in stages and with constant improvement. Now we know, from the various existing data, just how far have we come along on our development journey.

Between the years 1960 and 1965, the per capita income of our people declined to an average of under 0.1 percent. During the same period, the national economy grew by only an average of 2 percent, while the average population growth rate was 2.1 percent annually. After the stabilization and rehabilitation efforts carried out by the New Order Government between 1966 and 1968, the economic growth reached an average of 6 percent. During the First 25-Year Long-Term Development program, our economic growth rate averaged 7 percent a year.

In 1969, precisely at the start of Repelita I (First Five-Year Development Plan), the per-capita income was US$70. At that time, Indonesia was classified as one of the poorest countries in the world. Twenty-five years later, our per capita income has gone up to almost $920.

Today, Indonesia is regarded as a middle-income country, although still in the middle-low category. For a country with as large a population as Indonesia's, the result of our hard work was not a small feat. The world community regards Indonesia's development as one of the most successful.

Such a high growth was also followed by an increasingly solid economic stability. The average inflation rate between 1961 and 1965 reached over 250 percent. The peak came in 1966, when it reached around 650 percent. Entering the decades of the 1980s and 1990s, the inflation rate was maintained at an average of under 10 percent.

We have succeeded in raising the per capita income as a result of, among other things, our success in containing the population growth. Since we launched the National Family Planning movement nationwide, the population growth has continued to decline every year. With the end of the first long-term program in 1994, we had brought it down to under 1.7 percent.

Furthermore, the policies of population distribution -- through, among other things, transmigration -- and rapid development in areas outside Java has reduced the population growth in Java. Whereas in 1961, Java and Madura were inhabited by 65 percent of Indonesia's population, in 1990 this figure had dropped to 60 percent.

The economic growth has led to the creation of an enormous employment opportunity. Between 1971 and 1994, 44.4 million new jobs were created. The number of these newly-created jobs far surpassed the size of the populations of many countries in the world.

The nation's agricultural development has improved the standard of living of farmers, while at the same time, providing a sufficient supply of the basic needs of the Indonesian people. In 1984, Indonesia became self-sufficient in rice. This means we managed to reach one of the primary development objectives of the first long-term program.

Subsequently, we have maintained that self-sufficiency in a flexible manner. It means that, apart from developing other foodstuff resources we, from time to time, are able to import and export rice. Our guideline is that, on the one hand, we pay attention to the interest of consumers by providing an adequate supply at a controlled price and, on the other hand, we also enhance the people's increasingly improving and evenly distributed well being.

This is the reason why the number of poor people has declined dramatically. In 1970, out of 100 Indonesians, 60 were poor. In 1993, this number dropped to 14 persons who were still considered as poor out of 100 Indonesians. Because of our large population, the number of our less-fortunate brothers and sisters is also big, close to 26 million.

The economic growth we have attained is supported by a rapid increase in all production sectors, especially the manufacturing industry sector. During the first long-term program, the overall production of the manufacturing industry sector rose by an average of almost 12 percent annually.

With such a development pattern -- entering its 50th year of independence -- Indonesia's economic structure has become increasingly strong and balanced. Whereas at the start of development the share of the manufacturing industry sector in our economy was less that one-tenth, and the agricultural sector more than half, at the start of 1990, the contribution of the manufacturing industry sector to the national product was bigger than that of the agricultural sector.

The dependence of Indonesia's economy on oil and gas has also declined substantially. Whereas at the beginning of 1980, the contribution of the oil/gas sector to the national production was around one-quarter, it now contributes only one-tenth.

With the decline of our dependence on oil and gas, the structure of foreign exchange earnings has become more balanced. The levels of our non-oil/gas exports are rising very rapidly. Whereas in 1968, the non-oil/gas export earnings reached just about half a billion US dollars, at the start of Repelita VI these earnings reached almost US$32 billion. With such a growth, the non-oil/gas commodities are playing an increasingly greater role in our national export. Whereas, up to the end of Repelita III, this sector accounted for only a quarter of our national export, today it accounts for more than three-quarters. The types of goods we are exporting have become more diversified and have gained a wider market.

Meanwhile, the structure of our domestic revenues has also undergone a fundamental change. The domestic non-oil/gas revenues have risen considerably to surpass the domestic oil/gas revenues. Entering the decade of the 1980s, domestic revenues from non- oil/gas sources represented less than 30 percent of the total domestic revenues. In the first year of Repelita VI, this reached up to almost 80 percent.

The increase of the non-oil/gas exports in our national export sector and the domestic non-oil/gas revenues in the state earnings have reinforced the structures of the balance of payments and the state budget. This also demonstrates the increasingly great role played by the public and business world in development activities.

Although investment by the state continues to increase, the investment by the public and business world has risen much faster. In the initial year of Repelita VI, the role of state investment is only one-fourth of the total investment, whereas in the past, until Repelita II, state investment still represented more than half of the total.

The solid national economic structure is also reflected by the increase and expansion of the network of basic infrastructure services, such as roads, harbors, electricity, telecommunications and so forth. The road and electricity networks have even reached remote villages. All of this indicates very significant progress because the availability of adequate basic infrastructure is one of the fundamental bases for a modern and dynamic economy.

This economic progress has ushered even further the improvement of the people's living standards and prosperity. At the beginning of our independence, the average life-expectancy was estimated at around 42 years. Twenty-five years later, it had risen to 46 years. At present, it is 63 years.

The health standard of our people has also improved. This is due not only to economic progress, but is the result of more intensive public health services that have reached people in the most isolated areas. This is also due to a healthier way of life, housing and resettlement environments, as well as improved nutrition in the diet.

In the early decades of our independence, the average per- capita/day energy intake was estimated at 1,880 kilocalories. At the start of the first long-term program stood at 2,035 kilocalories, and went up again in 1994 to 2,933 kilocalories per-capita/day. The protein intake of the people during the first 25 years after independence rose from only 42 to 43 grams. Twenty-five years later the protein intake stood at 67.1 grams per-capita/day.

This improved nutrition is clearly manifested by Indonesia's present day children. Whereas the people, who were born before or around the time of the revolution for independence, are relatively small and short, the bodies of their children and grandchildren are stronger and fuller. And generally speaking, our nation's newer generation is taller than their fathers and mothers.

Various research studies have reinforced what we see every day. The weight of our under-five-year-olds recorded between 1978 and 1992 showed an average rise of 0.5 kilogram. And the height had expanded by 2.3 centimeters. The measurement of the height of the thousands of children who were entering elementary schools in various regions in 1994 showed that the average height of boys was 114.9 centimeters and girls 114 centimeters. Compared to the figures for 1964, the height of boys just entering elementary schools in 1994 was up by 1.4 centimeters and girls by 1.2 centimeters.

The improved nutrition and health standards can be attributed not only to sufficient food supply, but also to the people's higher income and better educational standards.

The Six Year Compulsory Education Program launched in 1984 reached its target before the end of the First 25-Year Long-Term Development Program. This was supported by the expansion of the elementary school infrastructure through the Elementary School Presidential Instruction (Inpres) Program.

When we had just become independent, the number of illiterate people between 16 and 25 years old in Java alone was estimated to reach about 70 percent of the total population of that time. At the beginning of the first long-term program, the number of persons over 10 years old who were illiterate had declined to 39 percent. Through an intensive effort, we were able to lower further the illiteracy rate to almost 16 percent in 1990. As a whole, all levels of education, as well as the quality of that education, have improved significantly.

The progress resulting from development has been enjoyed more equitability, especially by women. There has been a marked increase in the role of women in education, health and labor.

In the education sector, the illiteracy rate of the female population over 10 years old has declined rapidly, from 50 percent in 1971 to 21 percent in 1990. This decline was faster than the rate for the male population, which was recorded as dropping from 28 percent to 10.5 percent. The number of female school children -- especially in elementary schools -- was almost equal to the number of males. At the higher educational level the number of female students has continued to rise. In the field of health, progress is shown by a higher life-expectancy rate for women from 48.5 years at the beginning of the first long-term program to 64.5 years at the start of the second long-term program.

The role played by women in the labor sector is shown by the level of the participation of the female labor force that continued to rise from about 33 percent in 1980 to around 39 percent in 1990. In fact, the growth rate of the female labor force in the 1980-1990 decade was 4.5 percent, faster than the 3 percent recorded for the male labor force.

The rural community now has a greater ability to develop their own regions. This heightened ability is sustained by the growth of social organizations in the fields of culture, education and religion, non-governmental institutions, local custom institutions, small-holders credit institutions and banks, as well as the cooperatives. Based on the experience gained during the implementation of the first five five-year development programs, the quality of development and its management on the Level I, regional, and Level II, villages, levels has steadily improved. Thus, regional autonomy has expanded in a more concrete, effective and dynamic manner.

The waves of global economic upheavals have seemingly hit us repeatedly. The prices of oil and various primary commodities have dropped drastically from time to time. And our export sector has depended on both. A series of one recession after another and various global monetary upheavals have adversely affected our growing economy.

Disasters and hindrances do indeed bring about difficulties. But they also bring blessings in terms of experience. Therefore, we always try to find a way to avoid repeating the same sufferings.

The drop in oil prices spurred us to intensify the development of our non-oil/gas sectors. The world recession and the fall of primary commodities' prices have prompted us to build highly- competitive industries, aimed at penetrating and holding on in the international market. We are entering the increasingly open and free world economy with the conviction that we will be able to seize the present and future opportunities that emerge with the globalization of world trade.

Presently, we are in the initial stages of the Second 25-Year Long-Term Development Program, which we started with Repelita VI.

We have already set out clear targets for the next five years, in fact, even for the next 25 years. We have to make our utmost effort to make sure that during the next 25 years we will quadruple the real per capita income of the Indonesian people. This is a greater increase than the results of our work during the past 25 years, which was three-fold.

Our progress so far has the world acknowledging it as an extraordinary achievement for a country with such a big population.

We are trying to make sure we abolish absolute poverty long before the end of the second long-term program. By the end of the second program, all Indonesian children should have access to at least nine years of education, eight out of 10 to high school educations and one out of four should be pursuing higher education. Health services and improved nutrition should extend the life expectancy to around 71 years.

The economic growth and increasingly qualified human resources will make Indonesia, by the end of the second program, an advanced industrialized and strong trading nation.

We made an early start towards this direction in the first long term program, especially during the last two five year plan periods. And we have launched a series of economic reforms since Repelita IV, through strict deregulation and debureucratization policies. As a result, accompanied by prudent macro-economic management, our economy has progressed rapidly, particularly during Repelita V.

Our economic growth has been even faster than expected when Repelita VI was drafted. We discovered this when we were doing a reassessment of the figures for our national income.

The rapid changes in the economic activities of the people have required a reassessment of the indicators used in measuring the economic growth. In such measurement, the base year of the national income has been changed from 1983 to 1993, which was the last year of the first long-term program. The scope of the national income measurement also has been expanded to cover economic activities which were not previously recorded. The methodology of measurement is also improved. With this up-dating, the increase in the national income has become more evident. The base year used to make the measurement before 1983 was 1973, Indeed, at least every 10 years we have to make adjustments.

During Repelita V, according to the calculation based on constant 1993 prices, our economy grew by an average of 8.3 percent a year. This figure is far higher than the calculation based on constant 1983 prices, namely 6.9 percent. During 1994, our economic growth was 7.3 percent.

The industrialization process has also proceeded more rapidly than we expected. In 1994 -- the first year of the first long- term program -- the manufacturing industry sector represented 23.9 percent, whereas the agricultural sector had shrunk to 17.4 percent. This change shows that improvement of our economic structure is taking place faster than we anticipated previously. According to the projections, the manufacturing sector was not to reach a level of 24.1 percent until the end of Repelita VI, with the role of the agricultural sector declining to 17.6 percent.

These changes certainly do not alter what we have to face every day. However, they undoubtedly show that our economic structure is becoming even better. This has compelled us to review the various targets of development set for Repelita VI. For instance, Indonesia's per capita income by the end of Repelita VI is targeted at US$1,020. We have to review this. Because, in 1994 our per capita income had already reached US$919. In the next one or two years, the target set for the whole of Repelita VI, will most probably be surpassed.

With an economic growth in Repelita V that reached an average of 8.3 percent and 7.3 percent alone in 1994, the target of growth set for Repelita VI, which is 6.2 percent, seems to be too low. Such a low target may make us complacent and probably will not stimulate us to work harder, nor encourage us to work more efficiently and productively. We do not intend to slacken our effort. On the contrary, such an improved situation should prompt us to make even more rapid progress in the future.

This review must be done, however, without changing Repelita VI itself, because basically speaking the policies and programs set out for Repelita VI are already well formulated. Also they have been the subject of wide-ranging discussion, and, in fact, the contents have been approved by the House of Representatives. Yet, there is still enough leeway to allow for the slight raising of the targets we want to reach in Repelita VI. Perhaps this could be said to constitute adding additional targets.

Now, with hard work and serious efforts, we hope that the economic growth will reach an average of 7.1 percent annually in Repelita VI. With such a growth, the nominal per capita income by the end of Repelita VI may reach around US$1,280. By that time, God willing, we will have become one of the newly industrializing countries.

Obviously, a greater amount of investment is required than previously anticipated. To attain such growth, investment of Rp 815 trillion will be needed during Repelita VI, compared to Rp 66 trillion in the previous plan. The role of the public -- including both the domestic and foreign private sectors -- will hopefully remain at around 77 percent. It is not impossible to reach such a huge investment level. That for Repelita V was much higher than our earlier expectation. Moreover, the investment in the first year of Repelita VI was higher than predicted.

The growth rate of 7.1 percent is lower than the average growth during Repelita V. However, this is quite a high target and we may not reach it easily. Because, at the same time, we must curb the inflation rate and maintain a constantly sound and safe balance of payments. With the same high level of spirit we demonstrated during the first long term program, we will do our utmost to reach the goals thus set out.

In such a rapidly growing economy, the industrial sector must continue to contribute, but with a greater share -- of up to more than 25 percent -- of the national income by the end of Repelita VI.

The industrial sector will be the mover of our economic wheels in the future. For this reason, I would like to elaborate more about this industrial development.

Industrialization is a process of change from an agrarian to an industrial society. The industrial sector will continue to play an important role, both in national production and in absorbing jobs. The industrial sector has the power to create higher added value by using resources more economically. In addition, at the same time, it will be expected to provide a strong impetus to the growth of other sectors.

The higher income of the people of Indonesia, which has such a big population, can be expected to create extraordinarily great demand for industrial products. Our national income by the end of Repelita VI will be expected to reach around US$ 260 billion. Such an economy has a great incentive as a market for industrial products.

This is the reason, therefore, we have to secure that this market does not slip from our hands. We should use our market as a stimulus for further industrialization processes.

This is to be achieved not by limiting imports through regulations. But, by encouraging the zeal and awareness of the people to give priority to our domestic products. Thus, we are not opposing the trend towards an open world economy, which we really cannot avoid. On the contrary, we must make use of it. Because we have taken the initiative for such an open economy, whether through the WTO, APEC and AFTA.

However, the world market and the opportunities open in the world economy are much larger than those in our own domestic market. To date, and also for the future, exports will have to be the movers of our industrial growth. In order to increase exports, we must have a competitive edge, we must work efficiently, with high productivity. There is no other alternative.

First, the must be strategic industries to meet the domestic demands. For example, transportation means industrial related activities on the land, the sea and in the air. The vast territory of our country as an archipelago and its geographical characteristics certainly require extensive transportation means. Also agricultural sector supporting industries, such as fertilizer plants and agricultural implements, and industries that meet the demands of the majority of the people and of the economy in general, such as industries for foodstuffs, cement, fertilizer, paper, basic materials for clothing, and so on.

Second, the export industry, an industry which has a good export market, or has the potential to grow further, is required. Fortunately we have an advantage, or, at the very least, the potential for such an advantage, which can still be enhanced. We have to maintain the export industry that has been developed so far and make sure it has a competitive edge by raising the value added of our products. We also must continue to expand and deepen our export commodities and expand their marketing potentials.

Third, industry that uses our national resources, namely natural resources such as exist in our agricultural sector, and in the broader terms of mining, as well as human resources, must be encouraged. We have to process and use our abundant natural and human resources, so as to produce the highest possible value added. Natural resources must be used sparingly and we must ensure the preservation of the environment. Industry that employs a great number of Indonesian workers must be encouraged, while at the same time, their skills must be upgraded, in order to raise productivity and improve the workers' well-being.

Fourth, industry that has a strategic value in technological development and mastery that will have an impact on the development of other industries is imperative. Industries such as engineering, machinery and components are important and must be seriously developed. Also industry that uses biotechnology in various fields. In the framework of developing high-tech industry, we already have the means, namely strategic industries which cover land, sea and air transportation, meaning steel, electronics and other industries.

Our strategic industries have progressed rapidly. We are encouraged, we have greater self-confidence and we feel proud. In less than two decades, we are able to make different types of aircraft, ships and rolling-stock. And these are all the result of the work of Indonesian men and women.

Fifth, industry that stimulates economic activities in the regions outside Java, especially in the eastern part of Indonesia. Because of the limited infrastructure, these regions have less incentive compared to other areas, which are more advanced in the provision of human resources and infrastructure network. Therefore, the development of industry in the least developed areas and especially in the eastern part of Indonesia, must get greater attention and special treatment.

It is impossible to carry out industrial development with one industrial sector alone. All sectors must have the support of all of our other activities: sectors that produce raw materials and infrastructure, trade, services, institutions and funding, education and training, as well as scientific and technological development.

Industrialization is a cultural process. Therefore, we must build a society, which has the characteristics of an industrial society. Our people must become increasingly hard-working, thrifty, thorough, responsible, disciplined, time conscious and must be instilled with the determination to produce the best.

Presently, the world is moving towards an era of a fully global free trade. This means that, in due time, goods, services, capital, technology, information and manpower will be able to move freely from one country or one part of the world to another.

At that time, we must have a truly efficient industry with a technological basis that we have truly mastered. Thus, economic growth and expansion of employment opportunities will really depend on industry and an increasingly equitable and expanded income for the people.

Our industrial structure must be strong and balanced between the upstream and downstream sector, between one sector and another, between one region and another, between big, medium and small industries and between the industrial and other sectors. The mainstay of raw materials for our industry is the natural resources that we manage in a sustainable manner.

Our manpower situation is dependent on the availability of a work force that has strong determination and a high level of productivity. We have to continue to preserve the quality of the environment, so as to enable our nation to continue its development at all times. This should be possible with technological mastery becoming an asset of the national industrial strength in the exploitation of all of the potentials at our disposal.

At the time when we are commemorating half a century of our National Independence, at a time when we are at the initial stages of take-off today, our nation's sons and daughters have started to master sophisticated technology.

This technological mastery is the result of hard work and the diligence of thousands of young Indonesian men and women. We feel the technological mastery of Indonesia's younger generation is a blessing bestowed upon us by the Most Compassionate God. We express our humble gratitude for His blessings.

Six days ago, the Indonesian nation witnessed the first flight of the N-250 aircraft Gatotkaca. This aircraft was designed and built by Indonesian men and women. It is full of instruments with the latest technology. We will continue to develop the aircraft which at present is capable of carrying 50 passengers so that later on it can carry 70 passengers. Today, our young experts are studying and designing the construction of a jet aircraft that can carry 130 passengers. Apart from meeting our own domestic demands, various types of this aircraft will hopefully be exported to meet international market demands.

During the war for independence and revolution, our young people were the pioneers who regained, upheld and defended our Republic of proclamation. They are the 1945 Generation, the Liberation Generation.

Today, 50 years later, in the era of material and spiritual development, at the time when our nation is just embarking on the stage of take-off in development, Indonesia's young people have become the pioneers in obtaining and mastering sophisticated technology. They are the Succeeding Generation. In a time of peace and development, the members of our younger generation have become pioneers and heroes. The present generation, the Succeeding Generation, are the pioneers, fighters and heroes of development!

We, the Liberation Generation, the 1945 Generation, that took part in the birth and defense of the Republic of proclamation, who witnessed our fellow freedom fighters lose their lives as sacrifices in the struggle toward independence, are now enjoying a very serene piece of mind. We are convinced that the future of our nation lies in the hands of the capable and responsible Succeeding Generation.

Regardless of the development we are implementing, its ultimate goal is social justice for the whole of the Indonesian people, the maximum prosperity of all of the people.

Therefore, we have to be cautious that the economic development process which relies on large-scale development of industries will not create a wider gap. Conversely, it must provide the people with greater opportunities to participate in development. Only with people-based development will we succeed in improving the well-being of the whole populace.

Therefore, in our industrial development it is indispensable that we develop small-scale and medium-sized businesses. They have a very strategic nature because they involve the participation of the public at large. Thus, we are applying democratic principles in development. Furthermore, small and medium sized industries absorb a great number of workers. Because of their small scale, these industries are more flexible and find it easier to adjust to changes. With strong small-scale and medium-sized industries, the industrial structure will become even stronger too.

So far, we have developed such small and medium-scale businesses. We must continue and intensify the effort to give them guidance, as we have done to date, through, among other things, education and vocational training, management and entrepreneurship, as well as the mastery of appropriate technology, financial assistance like credit lines and venture capital, as well as marketing. Equally important is the promotion of the partnership of these small and medium-sized industries with big businesses, based on a pattern of mutual help and mutual benefit.

We also must continue to generate the cooperatives. Indeed, we have made encouraging process in the development of cooperatives, but what we have achieved is still far from the mandate of the 1945 Constitution. Therefore, in the future, we should pay greater attention to the reinforcement of cooperatives, so they will become a truly effective economic forum for the people.