Economic growth and reality

Economic growth and reality

Recently, the Chairman of the National Development Planning
Board, Ginandjar Kartasasmita, announced that Indonesia's
economic growth for 1995 was 8.07 percent, as compared to 7.48
percent for 1994. Income per capita for 1995 was US$978
(approximately Rp 2,000,000), a slight improvement from the
previous year.

We should not be too happy with these facts and figures. They
have a statistical value only. The real situation remains of
great concern to us:

* The salaries of civil servants, Armed Forces members, and
pensioners are still very low compared to those of the private
sector. In Singapore, civil servants are better paid than private
workers.

* The salaries of Indonesia's blue-collar workers make up only
around 10 percent of a company's overall expenditures. However,
spending for official as well as illegal fees ranges between 20
and 30 percent.

* Indonesia ranks third among 12 Asian countries in terms of
wasteful budget expenditures and corruption, according to the
Hong Kong Business Institution.

* Farmers are forced to pay high prices for fertilizers and
other necessities.

* These conditions call for attention from all parties.

SUHARSONO HADIKUSUMO

Jakarta