Experts propose blueprint for economic recovery

Kurniawan Hari, The Jakarta Post, Jakarta

The Association for a New Indonesia (PIB) on Thursday presented an economic blueprint to the Second Ad-Hoc Committee of the People's Consultative Assembly (MPR) that it is hoped could serve as a comprehensive guide for the country's economic recovery process.

Noted economist and PIB coordinator Sjahrir said the blueprint was designed to enable the government to get "focused" so that the economic recovery process could be accelerated.

"We will provide the government with basic economic and financial policy covering various aspects such as the budget, banking and manpower," Sjahrir told a press conference.

The PIB hoped the economic plan could be enshrined by the MPR in a decree at next month's annual session.

Sjahrir said that under the blueprint, all economic institutions would have to boost their performances to speed up the economic recovery process.

He said that the move was prompted by fears over the impact of the global economic slump on the domestic economy, particularly in the aftermath of the Sept. 11 terrorist attacks in the U.S.

He said the series of U.S. military strikes on Afghanistan and the anti-U.S. rallies at home had disrupted the economic recovery process.

Fellow economist Pande Radja Silalahi elaborated that a new economic plan was needed because the country was facing tough challenges.

"We hope all elements from the executive, legislature and the judiciary will get involved in the recovery process," he added.

Pande said that if the country was too late in anticipating the rapidly changing situation, the consequences would be even more severe.

The economic plan, titled "Basic economic and financial policies for the reconstruction and recovery of the national economy" comprises 13 chapters and 38 articles.

According to the association, the role of the state in economic affairs must be limited to facilitation and regulation.

"Ownership and implementation functions must be in the hands of society," it said in the draft.

Touching on the asset restructuring program, the PIB recommends the setting up of a commission to monitor the performance of the Indonesian Bank Restructuring Agency and to prevent corruption.

Concerning state expenditure, the government is urged to boost efficiency, and should focus on fulfilling the basic needs of the public, including health and education requirements, and food security.

To allow the PIB economic plan to work, one crucial requirement would be for the state apparatus to have a simple and efficient structure, and for officials and functionaries to have clear job descriptions.

In the meantime, Ad-Hoc Committee chairman Rambe Kamarul Zaman said he was unable to say whether the economic blueprint would be adopted by the assembly because it would require the approval of eleven factions.