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.