Decentralization key to development planning: Minister

Decentralization key to development planning: Minister

JAKARTA (JP): State Minister of National Development Planning
Ginandjar Kartasasmita said yesterday that the decentralization
of development planning should be boosted in order to achieve the
objectives of the national development program.

"We have learned from other countries' and our own
experiences in the past that effective development planning
should be carried out with greater involvement of provincial and
local planning agents," Ginandjar said in his keynote speech at
the launching of the Magister Program for "Planning and Public
Policy" at the University of Indonesia yesterday.

Ginandjar, who is also chairman of the National Development
Planning Board, said that decentralized concepts are more
effective because they focus on regional approaches, as compared
to a sectoral approach which tends to be the result of
centralized planning.

"Indonesia is a very big country and we have limited
capabilities to make good plans for each part of the country," he
said.

He said that the involvement of local planning agents is
important because they are more aware of the particular needs of
their regions.

Ginandjar acknowledged, however, that it takes time to
implement decentralized planning owing to a lack of professional
planners at the local level and difficulties in overcoming
bureaucratic attitudes.

Therefore, according to Ginandjar, provincial and local
planning agents should improve the quality and quantity of their
planning staffs.

"Even in my office, we still need more qualified staff members
to handle a lot of jobs," he said.

Without elaborating he confirmed that some bureaucrats from
certain sectors are still unwilling to implement a decentralized
approach.

Ginandjar said that in line with increasing globalization
trends, coupled with expanding international and intra-regional
trade and the development of technology, the dominant role in
free market economies is shifting from the government to the
private sector.

In such circumstances, development planning must also be
adjusted to take into account the new dominant segment of the
economy.

"It suggests that the government cannot undertake direct or
`imperative' intervention in the private sector. Instead, the
government should indirectly support the private sector through
certain measures like monetary or fiscal instruments," Ginandjar
argued.

He particularly noted that the expansion of private
participation in national development will force decision makers
to improve transparency and the quality of plans.

"The key concept is the mobilization of private participation
not only in the implementation of policies but also in the
planning stage."

Meanwhile, academician Anwar Nasution, in his speech entitled
"Government and Market Mechanisms Following the Economic Reforms
since the 1980s", argued that despite deregulation, the
government still has an active role in resource allocation within
the Indonesian economy.

Anwar criticized that the objective of state intervention in
the economy is often associated with rent seeking activities and
patrimonialism.

"This is in contrast to Japan and other countries like Hong
Kong, Taiwan and Singapore, where intervention is aimed mainly at
maximizing long-term economic welfare," he contended.

He said that in the case of Indonesia, many strategic
industries and projects are probably generating few pecuniary and
technological benefits.

The government, according to Anwar, distributes the rents as
give aways without demanding responsibility from their recipients
or penalizing poor performers. (alo)