Indonesian Political, Business & Finance News

House warns against business domination

House warns against business domination

JAKARTA (JP): House Speaker Wahono called on the government yesterday to check the domination of big businesses in the economy.

Addressing the House of Representatives ahead of President Soeharto's annual budget speech, Wahono identified a number of "corrections" that Indonesia must undertake to ensure sustainable development.

The government should also set up programs which link small, medium and large-scale businesses, curtail excessive bureaucracy which causes a high cost economy, and set up conventions to encourage communication between state institutions, he said.

Wahono spoke of the vital role of the bureaucracy to the development of strong, dependable entrepreneurship.

A dependable business community will not emerge in a society with poor discipline and productivity. "On the other hand, a productive and disciplined society with high integrity will not be fostered by a slow, inert and corrupt bureaucracy," he said.

The public has become more critical, and that they would no longer accept certain traits of the bureaucrats, he said.

"Dishonesty and arrogance are quickly rejected," he said.

"It's no longer the time for anybody to consider themselves superior only because they are holding some formal positions," he said. "The public has become intelligent, thanks to the maturing political life we have developed in the New Order era," he said.

"Use of coercion to change people's thought and opinions is no longer acceptable, especially for our younger generation."

Organizations

Wahono also spoke of the mushrooming of new mass organizations "which are productive and constructive in nature".

Discourses on how the state is being run, or on the life of the nation and the community is no longer the monopoly of certain people or groupings, he said.

Through various social groups and associations, more people are contributing thoughts and helping the nation mature, he said.

While the trend may be positive, Wahono said that there's also the need to beware of establishment of organizations which are harmful to national unity. "We do not want organizations, in whatever forms, which deviate from rules and harm the national unity and cohesion, to emerge."

Wahono spoke of the need to be sensitive toward the threats of "stagnation" in development arising from the decision makers' slowness in responding to new social phenomenon.

"The President has always reminded us of the changing aspirations of the world and humanity, especially in regard to democratization," he said. "From time to time, we are required to be sensitive and responsive toward potential problems arising from slow decisions."

Wahono said Indonesia should proceed with the program to review existing laws and develop ones which are more suitable for today's condition.

"The House and the public in general wish for the establishment of a national legal system and laws which are more suitable for what we have accomplished so far," he said.

"We have to admit that, to date, we have yet to establish a standard national legal system," he said. "We are still shaping of our national legal framework, and this is why some of the laws developed have yet to meet the will of the public," he said.

Wahono said the House is expected to finish its deliberation on the state budget by the end of February, which is one month before the budget becomes effective.

In this season, the House will continue its deliberation on a number of draft laws, including on agrarian matters, on the establishment of a juvenile court, and on Indonesian waters.

Wahono also spoke of the need to establish "a dynamic, balance budget".

He said that in order to achieve the targeted annual economic growth of 7.1 percent during the current Five-year Development Plan period, the country needs an investment of Rp 815 trillion (US$354.3 billion). Some 22.7 percent of the amount is expected to come from the government sector, with the remaining 77.3 percent coming from the private sector. (swe)

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