Mon, 02 Oct 1995

Irian Jaya to have 'Pancasila village'

JAKARTA (JP): A village community in which life is organized in true conformity with the state ideology Pancasila may exist in the province of Irian Jaya.

A pilot project is underway in Aimbe in the Kemtugresi district to establish what is being described as the "Pancasila village."

The Modern Diaconeia Campus Foundation, which is carrying out the project, says it is testing its concept of village community development on the basis of the "Pancasila Economy." It sees the concept as an alternative to the conventional methods of bridging the gap between the rich and the poor, which has become a national concern.

Foundation chairman Solagratia S. Lumy, during a seminar on the "Pancasila village" concept on Saturday, said the program, begun three years ago, aims to build communities in which some people run small-scale business enterprises.

"In such a community environment, the small entrepreneurs form a strong bond with the local people in further strengthening their enterprises," Lumy said. The bonding is achieved by making all community members shareholders in the business, he said.

The foundation is a non-governmental organization under the auspices of the Indonesian Protestant Churches Community, which is supporting the pilot project in Irian Jaya.

The Irian Jaya provincial administration has granted 3,000 hectares of land for the project. Hundreds of families are now receiving education and training on modern business methods in fields such as agribusiness, milling and handicrafts.

The pilot project is estimated to cost at least Rp 50 billion. Lumy said the foundation would welcome offers of assistance for the project, particularly from banks and state companies.

State banks, for example, could offer collateral-free credit to the people to help them start off their enterprises, he said.

Under the "Pancasila village" concept, a village is divided into smaller units, each running its own enterprises. A unit can consist of up to 40 families.

Lumy, who is also a Protestant pastor, said the concept promotes a greater sense of belonging, solidarity and mutual respect within a community.

He said that the concept was born out of frustration over the fact that past efforts to redress the gap between rich and poor in Indonesia, either locally, regionally or nationally, had failed.

"What we are seeing after 50 years of independence is that the rich are becoming richer and the poor are becoming poorer," Lumy said.

"Our economy has been growing rapidly over the past three decades but the fruits of development have largely been enjoyed by a small number of people," he added. (rms)