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)