House members call for greater equality

House members call for greater equality

JAKARTA (JP): Legislators are saying that a high rate of
economic growth is not, in itself, sufficient and are demanding a
more equitable distribution of wealth.

Hamzah Haz, chairman of the United Development Party faction
in the House of Representatives, told journalists on Wednesday
that the government has been too heavily oriented towards
economic growth.

As a result of the government's growth-oriented policies,
Hamzah said, the bulk of Indonesia's economy is concentrated in
the Greater Jakarta area only.

"Will this growth orientation have a multiplier effect on
other areas? I don't think so," Hamzah said after attending
President Soeharto's state of the nation address to the House on
Wednesday.

In his speech, Soeharto said that the growth targets for the
current sixth five-year development plan will be revised upwards
from 6.2 percent per annum to 7.1 percent per annum.

With the higher growth target, Indonesia's nominal per-capita
income by the end of the current five-year period, which ends in
March 1999, may reach US$1,280, as compared with the current
level of $920.

"The wealth is now dominated by the Greater Jakarta area.
There have not been significant efforts by the government to
bring more equality to the majority of the people in all parts of
the country," Hamzah said.

Aberson Sihaloho of the Indonesian Democratic Party faction
concurred with Hamzah, saying that to enhance equity the
government should regulate natural resources to prevent them
being monopolized by certain parties only.

"The management of natural resources needs to be re-examined
because in many cases the people who live close to certain
natural resources do not get even a tiny portion of the
exploitation rights to the resources," Aberson said.

Tadjoedin Noer Said of the ruling Golkar faction also
criticized the government's overt orientation towards economic
growth which, he said, has been widening the gap between the
haves and the have-nots.

The government's policies should be oriented more to the
interests of the common people, he said, rather than stressing
growth. The prime objective of economic development should be a
more equitable distribution of wealth, Tadjoedin said.

"As mandated by our constitution, all development has to be
oriented to the people's welfare. However, the people's welfare
cannot be measured only by economic growth figures and the level
of investment," he contended.

President Soeharto told the house in his address that, to
attain the targeted growth of 7.1 percent per annum during the
current five-year plan, the investment target for the period
should be raised to Rp 815 trillion (US$360 billion) from the
original target of Rp 660 trillion.

Tadjoedin warned, however, that such investment will, again,
be concentrated in the Greater Jakarta area. "Thus there might be
other areas suffering negative investment growth".

"I'm sure the investment target can be reached, but I'm afraid
most of them will be in Greater Jakarta. If that is the case, it
will be dangerous for the city itself," Tadjoedin said.

Businessman Fadel Muhammad, chairman and founder of the Bukaka
Group, suggested that the government give greater preferential
treatment to investments in the least developed areas,
especially the eastern provinces, to prevent the concentration of
investments in Jakarta and its surrounding areas.

State Minister of National Development Planning Ginandjar
Kartasasmita acknowledged that the government needs to reorient
its policies towards small and medium-sized enterprises which, he
said, represent the majority of the people.

Ginandjar said that Indonesia's economic growth has so far
been enjoyed mostly by certain groups of people only. "Let those
big entities manage their businesses by themselves. Don't give
them support, facilities and protection anymore," he said.

However, he said the fostering of small and medium-sized
enterprises should not be pursued through protection.

He said nurturing small and medium-sized firms requires
coordinated efforts from all government institutions. "The
sectoral approach is no longer effective," he added. (rid)