Thu, 25 Jul 2002

MPR prepares decree on economic recovery

Kurniawan Hari, The Jakarta Post, Jakarta

The People's Consultative Assembly (MPR) has outlined a draft decree that will provide the government with guidelines and recommendations to speed up the economic recovery.

By means of the decree, the Assembly expects that the government will focus on efforts to create legal and security assurances to encourage investment.

The government was also urged to evaluate its relations with international institutions and donor countries.

"We need to make suggestions to the government because there is no sign of economic recovery. We will spell out the difficulties to the government," said Potsdam Hutasoit of the Indonesian Democratic Party of Struggle (PDI Perjuangan) here on Wednesday.

Potsdam, however, said that there was still a debate among legislators as to whether the guidelines would be in the form of an MPR decree or merely a set of recommendations.

Fellow legislator Syafrin Romas of the National Awakening Party (PKB) added the guidelines were aimed at giving the government clear direction for its policies on economic recovery.

"Well, at least the government will receive economic recovery guidelines for the year ahead," Syafrin told The Jakarta Post at the Assembly building here on Wednesday.

He acknowledged that the decree would have political implications for the President if the government failed to carry out the economic recovery.

According to Syafrin, such implications should not be considered anything unusual because the President was still elected by the Assembly.

Although it would be normal for the Assembly factions to evaluate the performance of the President, Syafrin urged fellow legislators not to prioritize their own political interests above all else.

The decree also stipulates that the government should immediately create clean and strong governance at a national through to regional level throughout the country.

The Assembly urges the government to negotiate with the donor countries over debt rescheduling and attempts to lessen the burden caused by foreign loans.

Both Potsdam and Syafrin emphasized that the political will from all state apparatus would determine the success or otherwise of economic recovery.

Political and legal steps were needed to deal with security problems that might affect the economic recovery.

Apart from the draft decree on the recommendation for a quick economic recovery, the Assembly also prepared draft decrees on the modification of the Assembly's internal rules, the revocation of an MPR decree on the procedure for presidential and vice presidential elections, and the agenda for the annual session in 2003.

The decree on the procedure for presidential and vice presidential elections issued in 1999 is likely to be revoked because the presidential election in 2004 is expected to be a direct one -- the first of its kind.

The last presidential election in 1999 was carried out by the MPR.