Govt can control conglomerates, Soeharto says

JAKARTA (JP): President Soeharto denied yesterday the Indonesian economy was being run by powerful big businesses.

The President defended the presence of conglomerates, which he said were a consequence of national development, Antara reported.

"We can control them through legislation. They will never take over the national economy," he said in an off-the-cuff remark while meeting with participants of a military course organized by the Armed Forces Staff and Command College.

The growth of conglomerates in Indonesia is a phase in the country's economic development, he told the 100 or so officers present.

He said the government has not been playing favorites by allowing only certain companies to grow. Each one had been given the opportunity to participate in development, he said.

But some turned out to be more capable than others, and that was how the disparity evolved, he said.

He cited the time when the government licensed as many as 23 new investors to build cement plants to help overcome a shortage.

"None of them was able to carry out the project, so the government had to turn to an existing producer to expand its production facilities," he said, stressing that the government in this case had acted in the interests of the general public.

The company in question was PT Indocement, one of the country's conglomerates.

The government also parceled out forestry concessions to many companies and individuals, but because some of them could not manage their allocations, they were forced to sell their concessions to others, he said.

Soeharto told the officers to be wary of suggestions that the government has "deviated" from the state ideology Pancasila and the 1945 Constitution.

"Some experts, scholars are suggesting this ... They are making judgments using a different ideology and formula," he said.

As an example, he cited the 1970s decision to limit the number of political parties to three.

This was made in view of Indonesia's experience with the multi-party system of the 1950s, when one government was toppled after another, some lasting only two to three months.

"Not only could you not have had any development. You could not even write down or plan anything," he said.

"There are no compromises when it comes to implementing the Pancasila and the 1945 Constitution," he said, stressing that members of the Armed Forces are under oath to defend both.

The meeting was held at the Bina Graha presidential office. Also present were ABRI Chief Gen. Feisal Tanjung and ABRI Staff and Command College Chief Maj. Gen. Yunus Yosfiah.

In his speech, Soeharto said that given increasing prosperity and the level of education resulting from economic development, people have now become more critical.

"In this situation, there are bound to be new demands that never existed before. As soldiers and fighters, ABRI members must grasp the spirit of change that is occurring in society," he said.

"ABRI must understand these changes with an open heart. But the demands for reforms must not change the principles that we have laid down and agreed on," Soeharto said.

Reaffirming the military's political role, Soeharto said ABRI need not remain in the front line all the time among other political forces.

Its role must be adjusted in line with changes in society, he said. "When political stability is firmly under control, ABRI should play its political role from a position of tut wuri handayani (providing guidance from the back)," he said. (emb)