Growth targets revised upwards

JAKARTA (JP): The government has revised upwards some of the economic targets of its current five-year plan, with President Soeharto saying that, although the original targets now look certain to be surpassed, the nation should not allow itself to become complacent.

In his state of the nation address, broadcast nationwide on Wednesday, the President said the economy has been growing robustly, thanks to nearly 30 years of unprecedented political stability. He said that even the targets for Repelita VI, the Sixth Five Year Plan which began in April 1994, now looked conservative.

Indonesia's per capita income is now projected to reach $1,280 by the end of Repelita VI in 1999, as compared with the original target of $1,020, Soeharto said. "By that time, God willing, we will become one of the newly-industrializing countries."

Indonesia's 1994 per capita income of $919 places it in the ranks of low-middle income countries.

Soeharto said that average real economic growth is now expected to be an annual 7.1 percent during the five-year period, as compared with the initial forecast of 6.2 percent. The President conceded that the original target had been too low.

"Such a low target might make us complacent and does not stimulate us to work harder, does not encourage us to work more efficiently and productively.

"We do not intend to slacken our efforts. On the contrary, such an improved situation should prompt us to make even more rapid progress in the future," he said.

The changes to the targets meant, he said, that Indonesia must strive to obtain greater investment -- namely Rp 815 trillion ($360 billion) during the five-year period -- than the Rp 660 trillion originally planned for.

Growth rate

Soeharto also disclosed that a revised calculation of Indonesia's economic growth rate during the previous five-year plan had yielded an impressive 8.3 percent per annum, compared with the 6.9 percent originally calculated.

The revision was made because Indonesia's gross domestic product is now calculated using 1993 as the base year, instead of 1983, making it more precise.

According to the new calculation, Soeharto said the economy grew by 7.3 percent in 1994.

The President delivered the state of the nation address to a plenary session of the House of Representatives on Wednesday.

The speech reflected upon the 50-year-long journey the nation has made since the founding fathers proclaimed independence on Aug. 17, 1945, with particular emphasis on the 30 years since the country embarked on a conscious national development program.

He described the period since 1969 as "the longest period of national stability and smooth development in our history since the Proclamation of Independence."

"We are determined to continue our common journey. We are making the best possible preparations to face the future. We are aware that we are going to face even greater challenges in the coming years," he said.

The President, a retired Army general, attributed political stability to the role played by the Armed Forces in politics.

He also said that the dedication and hard work of the administration, from the central government to the village level, had contributed to the economic successes of Indonesia.

He admitted that the administration was not free from "shortcomings, errors and misdeeds" but gave assurances that the government would rectify and improve the situation.

"One cannot deny there is corruption and abuses of power, but they are being dealt with in accordance to the law," he said.

"However, it is also clear that it would have been impossible for a corrupt and incompetent apparatus to bring the nation to the present level of progress and prosperity."

Soeharto highlighted last week's inaugural flight of the N- 250, the first-ever locally designed and produced aircraft, as one of the major achievements Indonesia has made during the 50 years of independence.

He described the young Indonesians who are mastering sophisticated technology as the heroes of their time, analogous to the young freedom fighters of the independence struggle.

"They are the succeeding generation. In a time of peace and development, our young people have become pioneers and heroes.

"We, the freedom fighters, the Generation of 1945 ... are now enjoying a very serene peace of mind. We are convinced that the future of our nation lies in the hands of the capable and responsible young generation," said the 74-year-old President, one of the few remaining survivors of the Generation of 1945.

Here are some of the statistics presented by the Soeharto on the achievements of the "development era".

Per capita income: From $70 in 1969 to nearly $920 in 1994.

Population growth: From an average of 2.1 percent in 1960, to less than 1.7 percent now.

Jobs: Between 1971 and 1994, a total of 44.4 million new jobs were created.

Food: Indonesia became self-sufficient in rice in 1984.

Poverty: The number of poor people declined from 60 percent of the total population in 1970 to 14 percent now, although this still means nearly 26 million people.

Life expectancy: From an average of 42 years in 1945 and 46 years in 1970, Indonesians can now expect to live for an average of 63.

Health: The average weight of children under five years has risen by 0.5 kg and their average height has increased by 2.3 centimeters.

Literacy: In Java, 70 percent of people aged between 16 and 25 were illiterate at the time of independence. By 1990, illiteracy has decreased to 16 percent nationally and is continuing to decline. (emb)