Sat, 14 Aug 1999

Indonesia no longer a model for developing countries: Minister

JAKARTA (JP): Coordinating Minister for People's Welfare and Poverty Alleviation Haryono Suyono bitterly told representatives of eight developing countries he was not ashamed to confess that Indonesia was world renowned not because of its success but because of its prolonged crisis since 1997.

"Indonesia is world famous not because it discovered a hybrid species of livestock or because its athletes won a world sport championship, but rather because it is unfortunate enough to have experienced one of the worst... crises (in its) 54 years of existence," the minister said while opening a joint meeting of experts and decisionmakers from eight developing countries, known as the D-8, on Friday.

The D-8 group comprises Turkey, Indonesia, Malaysia, Pakistan, Bangladesh, Iran, Egypt, Nigeria and Turkey. Its establishment was proposed by then Turkish prime minister Necmettin Erbakan in 1996. Its first summit was held in Istanbul in 1997.

Indonesia was often regarded as one of the best models for developing countries. That was before the economic crisis hit the country in 1997, which was followed by a political crisis that preceded the fall of former president Soeharto in May last year.

On behalf of poor countries, Soeharto often urged industrialized countries to write-off the debts of developing nations and help them in rebuilding their country.

"Our per capita income has gone back to its former place in the poor countries group," the minister said. The income per capita dropped from about US$1,000 to $400 after the crisis.

Haryono recalled how riots and clashes occurred in many parts of the country, which then forced Soeharto to step down. Soeharto was later replaced by B.J. Habibie.

"Even until the present, the political strings remain very tight after we successfully conducted our (June 7) general elections," the minister said.

He then disclosed the lists of policies the government launched to reduce people's suffering, including the provision of cheap and subsidized basic foodstuff and massive labor intensive projects.

"However, what looked good on paper does not always work out there in the field," the minister conceded.

The United Nations World Food Program (WFP) recently announced a $50 million expansion in its relief efforts to feed 1.7 million people in Indonesia. The emergency operation started early last month and will last until June next year.