Analysts criticize state economic management
JAKARTA (JP): Observers spoke out yesterday against what they called the growing clout of capital owners in the country's social, economic and political scenes.
Adi Sasono and Amien Rais, both members of the Association of Indonesian Moslem Intellectuals (ICMI), separately warned yesterday against letting the capital owners' domination continue.
"Indonesians don't want to see the country controlled by capital owners," said Adi, who is also a senior researcher at the Agency for the Assessment and Application of Technology (BPPT).
"A healthy state economic policy should benefit the majority of people," said Amien in a seminar on Islamic economic systems, in Yogyakarta yesterday.
Adi said control of the economy as well as political affairs by a small group of Indonesians could cause a widening socioeconomic gap among people. "(The gap) would sow discontent among people, and could eventually provoke violence," said Adi.
He cited a series of riots, which he said were triggered by the socioeconomic gap, in Indonesian cities before and during the election campaign in May this year.
Adi said ICMI, with President Soeharto's instruction, has begun researching and investigating the riots. The organization was striving to understand the root of the problem and recommend a solution.
Adi suggested that the public be empowered economically, and that poverty eradication programs be accelerated so that Indonesians at all levels could improve their quality of life.
"If people are satisfied, it will simplify the ongoing process of democratization in the country," he said.
Amien, who is a lecturer at Gadjah Mada University's School of Social and Political Sciences in Yogyakarta, suggested a balanced distribution of economic development and the strengthening of people-oriented economic policies.
Menara
He criticized policies which place undue importance on trivialities.
He cited the construction of the US$560-million, 558-meter Menara Jakarta -- the tower project funded by a consortium of tycoons, including Sudwikatmono, Prajogo Pangestu and Henry Pribadi.
"It would be better if the money was used for improving people's welfare," he said.
Adi also suggested that the government exercise a form of control over capital ownership.
"It is difficult nowadays to trace the citizenship of capital owners," he said.
He criticized the sale of Indonesian company shares to foreign-based companies, and called it capital flight.
He did not mention names but was apparently referring to the giant Salim Group's cement firm PT Indocement Tunggal Prakarsa's decision to sell 50.1 percent of its shares in the group's foodstuff firm PT Indofood Sukses Makmur to QAF, a tiny foodstuff company listed in Singapore.
"Who can guarantee that the Singapore company's shares will not be sold in the stock market some day?" he asked.
The government has declared that there will not be any capital flight resulting from Indocement's restructuring.
"Instead, the move will generate a capital flow of Rp 1.7 trillion (US$655 million) and also generate Rp 122 billion in income tax for the government," Coordinating Minister for Production and Distribution Hartarto said last month.
"Moreover, the government will not only retain its 25.73 percent stake in Indocement, valued at Rp 2.4 trillion, but will also own 10.18 percent of Indofood worth Rp 1 trillion," he said.
He also defended the Salim maneuver, saying that the Singapore company will still be controlled by Salim's companies (Mekar Perkasa, Citrabuana Dirgapuri and Kaolin Indah Utama) as the majority owners.
Amien disagreed with the widely publicized argument that Salim's maneuver was a new form of nationalism.
"It seems difficult for us (people) to understand whether the state economic policy is right or wrong," he said.
Minister/Secretary Moerdiono rejected criticism that Salim's move was not nationalistic.
"Nationalism means doing the best for the national economy and giving the greatest benefit to the people," Moerdiono said last year. (imn/23)