Fri, 13 Nov 1998

Commission split over use of 'indigenous' in decree

JAKARTA (JP): A dispute at the People's Consultative Assembly over use of the term "indigenous Indonesian" in a draft decree on political economy was narrowly prevented from going to a vote late on Thursday after some frantic behind the scenes lobbying.

During the meeting of Assembly Commission D, the United Development Party (PPP) faction insisted that the decree should cater to "small and medium-scale entrepreneurs, especially indigenous Indonesians".

However members of the other four factions said the decree should not contain the word "indigenous" because it could be interpreted in a racist manner and might backfire on the country.

The 206 commission members, led by businessman Yusuf Kalla of the regional representatives faction, successfully persuaded the PPP that the draft in its current form catered sufficiently to the needs of Indonesian entrepreneurs.

Speaking before the decision was taken, businessman Imam Taufik of the Golkar faction said: "Without quoting the word 'indigenous', the current draft decree already caters to the needs of indigenous people."

Taufik, who heads the Association of Indigenous Indonesian Businessmen (HIPPI), said 90 percent of the small and medium- scale entrepreneurs targeted by the decree are indigenous.

He expressed concern that the international community would deem Indonesia racist and discriminatory if the word "indigenous" was used in the text of the decree. "The current draft decree is good, so why ruin it with one word?" he said.

The decree on politics in a democratic economy aims to encourage small and medium-scale entrepreneurs to play a larger role in the economy through preferential facilities for them.

During the commission's morning plenary session, noted businessman James Riady, representing the business community on the commission, disagreed with PPP's proposal.

"If there are 200 or 250 non-indigenous businessmen who are rotten, then they should be condemned, but don't dismiss the remaining eight million non-indigenous Indonesians," James, who is himself a Chinese-Indonesian, told the plenary session.

James said the decree should instead focus on a more equitable distribution of wealth by improving welfare in rural areas.

He also blamed the government for the inequitable wealth distribution, saying the government controls between 60 percent and 80 percent of the country's economy through ownership of natural resources and state-owned firms.

"In the last 25 years, the growth in sectors controlled by the state, such as mining and utilities, has been a mere 1 to 2 percent, while growth of the private sector reached 11 to 12 percent," he said.

Meanwhile, discussion of the draft decree on regional autonomy proceeded smoothly. (das)