Kadin calls for affirmative action
Kadin calls for affirmative action
JAKARTA (JP): The Indonesian Chamber of Commerce and Industry
and the House Budget Commission suggested yesterday the drafting
of a new economic and political policy to propel the indigenous
into the economic mainstream.
The chamber's chairman, Aburizal Bakrie, said at a hearing
with the commission that the indigenous made up 95 percent of the
country's 200 million people but were deprived economically.
He said Indonesia needed to take affirmative action to empower
the indigenous people before more political explosions occurred.
"We have been following the balance principle in our political
and economic life. However, our economic condition is far from
balanced. That's why we need a new economic, political policy to
correct the situation," Aburizal said.
Indonesians of Chinese descent, who make up less than 5
percent of the Indonesian population, control more than 60
percent of the economy.
Aburizal cited Malaysia's New Development Policy, which was
then the New Economic Policy, as an example of a deliberate
affirmative program to drive indigenous Malaysians into economic
power.
The Malaysia's New Economic Policy, launched in 1970, had the
clear goal of distributing 30 percent of the nation's wealth to
indigenous Malaysians.
Non-Malay controlled companies were obliged to restructure if
they wanted to bid for government work or go public. This meant
selling 30 percent of stock at a discount to eligible Malaysians.
"The objective was clear; capitalization on the side of the
indigenous. Yes, there were abuses. That's all right. But there
must have been a number of people growing big, benefiting from
such policy," Aburizal said.
Malaysia's Economic Development Policy, which succeeded the
New Economic Policy in 1991, put no time limit on the
redistribution of wealth, and replaced rigid numerical targets
with general guidelines. But it still sided toward the
empowerment of the indigenous' economically.
Aburizal said Indonesia had initiated a program to empower the
indigenous in mid-1955 with the so-called Benteng Program, which
resulted in many abuses and was halted.
Most recently the government introduced the so-called "Kepres
16" which favored "Indonesian origins" (indigenous) in tendering
government projects.
"And we need more like Kepress 16," Aburizal said.
Legislator Bomer Pasaribu from the ruling Golkar faction
supported Aburizal's suggestion, saying that Indonesia needed to
take corrective measures to redistribute its productive assets.
"Empowering the indigenous without corrective measures is just
nonsense," Bomer said.
Tadjudin Noer Said, also from Golkar faction, shared the view,
saying the focus should be on empowering small and medium
enterprises, owned by the indigenous.
"Empowering small and medium enterprises would also improve
our competitiveness in the regional, or even the global market,"
Tadjudin said. (rid)