Inconsistencies increase costs, says philosopher
Inconsistencies increase costs, says philosopher
JAKARTA (JP): The inconsistencies of Indonesia's economic
policies will have to be minimized if the country is to keep its
economy on the right track, a leading philosopher said yesterday.
Speaking at a seminar, Franz Magnis-Suseno, a lecturer at the
Driyar Kara School of Theology, praised Indonesia's current
economic policies for anticipating the changes of a more open
world economy.
However, German-born Magnis noted that policy inconsistencies
are obvious in the rampant cases of corruption and collusion
between officials and businesspeople.
All of these practices, he said, are contributing to a high-
cost economy.
"In the time of a global economy, ill practices like
corruption, connections, collusion and the like will endanger the
competitiveness of our exports.
"Imagine, some 30 percent to 40 percent (of production costs)
have to go to such practices. That's dangerous," Magnis told the
seminar, organized by the Bali Post daily.
High costs plague almost every sector of the economy, he said.
The government's policy to reduce the consumption of alcoholic
drinks, for instance, has been used by certain parties for their
own ends.
"I like to drink beer. But the labeling? If every rupiah went
to the finance minister that would be okay. But it's not like
that. And I question where the honor of the country is," Magnis
said.
He noted that such acts of rent-seeking are widening gaps
between the rich and the poor as well as between developed and
lesser developed areas.
Magnis pointed out that the government is serious in wanting
to narrow the gaps but that its policies are struggling at the
implementation level.
"The government has tried hard to alleviate poverty, but again
there are inconsistencies, something's interfering," Magnis
noted. "Its like the country is being divided by a number of
individuals for themselves."
Magnis warned that the disparities must be corrected. If not,
he said, a "time bomb" awaits the country, which is not based on
the same ethnicity, religion or language, but on "promises,"
including the promise of a just society.
"Primordialism and fundamentalism tend to be the result of
widespread injustice," he said.
He noted that the problems of the past, including the 1950s
and 1960s, were mostly created by unfulfilled "promises."
"It is true that no justice is 100 percent. At the same time,
we do not want a society which is clearly unjust or containing no
justice at all," Magnis said. (rid)