Sat, 12 Jun 2004

Economic manifestos of candidates 'unrealistic'

Dadan Wijaksana, Jakarta

Various economic platforms set out by presidential candidates are seen not only as unrealistic and overly ambitious, but also more importantly lacking in details on how to achieve those targets.

Rather than providing clear-cut short-term programs needed to achieve longer-term and more sustainable economic goals, the candidates have instead turned to populist programs, independent economists have said.

"Generally, all the platforms were based on the assumption that the government is clean, not corrupt, and our legal system is already strong, which is definitely not the case," Chatib Basri of the University of Indonesia said on Thursday.

When the government is no longer corrupt and the legal system is clean -- two of the country's most chronic problems deemed as detrimental to investment and economic growth -- only then will those targets be realistic and workable.

"Maybe it's because of the campaign period. Their platforms are meant more for campaigning rather than for governing," Chatib said, pointing to the ambitious annual economic growth targets set by the candidates.

The pairing of Wiranto-Salahuddin Wahid sets a target of 7.8 percent, with Megawati Soekarnoputri-Hasyim Muzadi at 6.8 percent followed by Amien Rais-Siswono Yudhohusodo (6.3 percent) and Susilo Bambang Yudhoyono-Yusuf Kalla (7.6 percent). Hamzah Haz- Agum Gumelar is the only pair which has not announced a growth target.

Questioning those figures, Chatib said that for Susilo to achieve the 7.6 percent target, the country would need about Rp 420 trillion in funds.

"Where could we get such a huge amount of money from? while at the same time the pair also acknowledges the fiscal problems crippling the government," he asked.

The five contesting pairs say they have put economic recovery at the top of their agenda.

As it turns out, however, the platform is seen to be merely a way of luring supporters, Aviliani of the Institute for the Development of Economics and Finance (Indef) said.

"What's lacking in their platform is the "how" part. They just simply set targets without providing ways to achieve them.

"They promise to provide free education, health care and so on -- that's basically about the state budget. But they have mentioned nothing about the state budget," Aviliani said on Friday.

Another Indef economist Faisal Basri cited the poorly-managed economic platforms as clear signs that the candidates were simply ignorant that "the country was in great danger and heading for collapse".

eyebox Key economic programs of presidential candidates

1. Wiranto-Salahuddin Wahid: -- Annual economic growth of 7.8 percent -- Improving investment climate by protecting property rights, reforming legal system

2. Megawati-Hasyim Muzadi: -- Preparing the country for AFTA, ASEAN Investment Area by improving economic and legal infrastructure -- Annual economic growth of 6.8 percent -- Improving economic competitiveness

3. Amien Rais-Siswono: -- Annual economic growth of 6.3 percent -- Creating a productive and fair economic system -- Strengthening market-oriented economy

4. Susilo Bambang Yudhoyono-Yusuf Kalla: -- Ensuring certainty for investors -- Annual growth of 7.6 percent

5. Hamzah Haz-Agum Gumelar -- Focusing on economic equality by providing equal access to goods and services -- Creating synergy between the government, corporate sector and the people