Candidates offer same economic policies

Candidates offer same economic policies

Rendi A. Witular, Jakarta

Businessmen got their first glimpses of the five-year economic
roadmaps of presidential candidates Susilo Bambang Yudhoyono and
the incumbent president, Megawati Soekarnoputri, during a dialog
held by a powerful business lobby.

The economic plans unveiled by the two are basically in line
with the economic programs outlined in the White Paper document,
which sets out economic reform targets promised to the
International Monetary Fund last year.

In a business meeting held by the Indonesian Chamber of
Commerce and Industry (Kadin) on Monday, Susilo said that if
elected, he would enter into a "social contract" with the
business community and the public.

"The contract will include a number of key economic policies
that we believe will satisfy all sides. This is the only way that
we can work together," said Susilo.

Susilo explained that based upon the contract, his
government's main economic target would to create a stable and
strong economic environment, increase national output and boost
the public's purchasing power.

He explained that these goals could only be achieved by
providing adequate infrastructure, revitalizing the local
economies focusing on agriculture and manufacturing,
strengthening small and medium enterprises, and ensuring legal
certainty for businesses.

Unlike Susilo, Megawati during her presentation preferred to
adopt the defensive approach by focusing on what she claimed was
her success in stabilizing the country's economy after the
economic crisis in late 1997.

"We are currently at the end of the stabilization phase.For
the next five years, our task will be to focus on growth," said
Megawati.

Megawati said that the current government had been credited by
international donors and rating agencies with stabilizing the
country's key fiscal and monetary indicators, including inflation
and interest rates, both of which skyrocketed in the wake of the
late 1990s financial crisis.

However, unlike Megawati, Susilo specifically identified some
of his target for the next five years, including economic growth
of 7.6 percent in 2009 compared to the 4.8 percent expected for
this year, unemployment of 5.1 percent in 2009 as opposed to 10.1
percent currently, and the poverty level reduced to around 8.7
percent from the current 17.54 percent. He also forecast that his
government would increase income per capita to US$1,731 in 2009
from $968 this year.

Investment is also targeted to contribute around 30 percent of
total gross domestic product (GDP) in 2009, up from the current
level of 16.7 percent.

However, most of the economic policies presented by the
candidates have been included in the White Paper, which contains
a series of economic reform targets that the government must
achieve in an 18-month period counting from August 2003.

The White Paper was produced after the government made the
decision not to extend the International Monetary Fund-sponsored
economic reform program, which expired at the end of 2003.

Among the key policies set out in the White Paper are measures
aimed at achieving and maintaining fiscal and monetary stability,
tax reform and the creation of legal certainty for investors.