MPR endorses broad State Policy Guidelines

MPR endorses broad State Policy Guidelines

JAKARTA (JP): The People's Consultative Assembly endorsed
yesterday the 1998/2003 broad State Policy Guidelines which many
critics say fail to anticipate a likely deepening of the economic
crises.

When presenting their final views in a plenary session,
government factions in the Assembly -- Golkar, the Armed Forces
(ABRI) and regional representatives -- approved the guidelines
with optimistic comments.

The minority Indonesian Democratic Party (PDI) and United
Development Party (PPP) meanwhile cautioned the next government
about bumpy roads ahead because of the economic crisis.

The 1,000-seat Assembly dominated by the government's
politicians also endorsed decrees on the provision of extra
powers for the next president, the acceptance of President
Soeharto's accountability speech, the presidential and vice-
presidential elections and the Assembly's internal rules.

On the controversial decree giving the president extra powers,
most factions only noted that the next president should be
mindful of upholding citizens' rights and act in line with the
state ideology Pancasila and the 1945 Constitution.

They said the President should report to the House of
Representatives as soon as he (or she) had exercised the special
authority given by the Assembly to safeguard development and the
nation's unity.

Only PDI advised that the next president should use the extra
power as the last resort in handling crises. It pointed out that
the use of the special authority would tarnish Indonesia's image
and scare off foreign investors.

Issues

The State Policy Guidelines, which consist of six chapters,
cover a wide range of issues for the next government to address
in the coming five-year term starting next month.

Critics say the guidelines were prepared before the economic
crisis started last July and few adjustments have been made.

Drafted by the government-backed political grouping Golkar,
the guidelines were made with a "spirit aimed at developing the
nation's independence (from foreign forces)".

"Considering what the government has achieved over the past
five years, the ABRI faction believes the guidelines are the best
we all could produce," ABRI faction spokesman Gen. Dibyo Widodo
said.

Like the 1993/1998 Guidelines, the new ones still put the
emphasis on the economy as the prime mover of development. The
Assembly requires the government to implement the policies with
improved efficiency and greater public participation.

The ABRI faction underlined the need for reform and a
restructuring of the economy in response to the impact of
globalization on Indonesia.

The faction reiterated the need for the next government to
promote political development but that the process should not be
carried out in a drastic fashion as some interest groups had
demanded.

The PPP and PDI stuck to their demands for clean governance,
political and economic reforms that would lead to democracy and
the abolition of monopolistic practices in business.

They stressed the need for the next government to abolish
monopolies, nepotism and collusion and encourage healthy business
competition.

"Monopolistic practices have proven unable to stop the
economic crisis that's sweeping over Indonesia at present," PPP
spokesman Abdul Aziz Imran Pattisahusiwa said.

"Conglomerate owners who enjoyed the monopolies (granted by
the government) have become a burden on all people, including the
poor," he added.

Saying that PPP was not anti-conglomerates, Abdul Aziz said
the next government should encourage large businesses to
establish partnerships with small businesses.

PDI warned that while it supported the government's policy to
look to the International Monetary Fund to help solve the crisis,
the faction warned that it should not sacrifice the interests of
the common people.

"The deal should not undermine Indonesia's sovereignty and put
the fate of future generations at stake by putting the debt
burden on their shoulders," PDI spokesman Soedaryanto said.

Gunawan Sumodiningrat, a Golkar member of the Assembly's
working committee, said the guidelines accommodated global
challenges by acknowledging, among other things, the demand for a
free market system, efficiency and equal distribution of "the
cake of development".

He acknowledged the country had not been able to fully
introduce a free-market economic system as many people still
needed time to get accustomed to it. (pan/byg)