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)