Concept needed to promote equality

Concept needed to promote equality

From Merdeka

Macroeconomic data should make us aware that the potential for conflicts triggered by economic disparity is very high. The disparity between national and foreign businesspeople, between the rich and the poor and between indigenous and non-indigenous people is widening.

Although our GDP is an annual US$3,500 per capita, the amount received as GNP is only $960, meaning that $2,540 goes to the foreign investor and creditor.

Per capita income is not distributed evenly among Indonesian citizens, because 80 percent of the nation's economic activities are conducted by 300 conglomerate groups. More than 100 million Indonesians have only 20 percent of the national economic cake.

Of the 300 business groups, non-indigenous businesspeople control 224 groups. Indigenous businesses are represented by 76 groups only and their assets are less than 20 percent of the total assets of the conglomerates.

The disparity has been felt in all economic sectors, revealing the limited access indigenous Indonesians have to financing. If GNP were better distributed, a married official with three children would earn Rp 1 million a month. But in reality government officials, both civil and military, receive salaries below the national average. In this condition of poverty, it is not surprising that many officials are easily bought by businesses (indigenous, non-indigenous as well as foreign) with money to spend. Consequently, the people who should be defended by officials are not protected when they are confronted by businesses.

It is the little people that become victims of injustice in matters regarding the law, land, manpower and economy. The result is poverty, unemployment and crime. Such unfinished business leads to a vicious circle and could give rise to conflicts which could easily explode.

A rational way out must be found to reduce the potential for conflicts and economic disparities should be discussed in an open and responsible way.

Malaysia used to have similar social and racial problems. After the 1969 racial riots, in which hundreds of citizens of Chinese origin were the victims, Malaysia introduced the concept of a New Economic Policy based on the formula of 30:40:30.

All government projects were allocated according to the formula, i.e. 30 percent to Malaysians, 40 percent to Chinese and Indians, and 30 percent to foreign contractors. Under this concept of equitable economic distribution, Malaysia has been free of racial riots for 30 years. Malaysians, Chinese and Indians live in harmony and are increasingly prosperous.

We, who have Pancasila, should also create a just and rational concept for equitable economic distribution to prevent the occurrence of riots like the ones in Situbondo and Tasikmalaya recently, which could cause even greater losses in the future.

RACHMAT BASOEKI S.

Jakarta