National stability under threat: Wahono

National stability under threat: Wahono

JAKARTA (JP): House Speaker Wahono warns that poor human
resources, low productivity, unemployment and foreign
interference may threaten the stability that Indonesia yearns to
develop.

Wahono said if not properly addressed, the problems would
disrupt the government's efforts to equalize distribution of the
development cake, maintain growth and promote stability.

"Deregulation and bureaucratic reforms...should be pursued to
make the system responsive to the changing times," Wahono said
when opening the current session of the House of Representatives
(DPR) Tuesday.

President Soeharto also presented his annual state-of-the-
nation speech at the House, marking yesterday's 49th Independence
Day.

Wahono said most Indonesians' education level, health status
and mastery of technology were inadequate to meet the demands for
industrialization.

Productivity and efficiency in all public institutions are
insufficient. "All economic, social, political and legal
institutions needs reformation," he added.

The lack of infrastructure can undermine economic growth and
is to blame for the economic disparities in the provinces, he
said.

The government has to work hard to mobilize the Rp 660
trillion (about US$320 billion) it needs to have the economy grow
by 6.2 percent as targeted for the current Sixth Five Year Plan
(Repelita VI), he said.

Wahono also warned that unemployment was an explosive issue.
In Repelita VI, 2.5 million jobs have to be created.

"In addition to all the challenges, foreign intervention in
Indonesia's domestic affairs will intensify," he said. "Foreign
pressures will be felt in international trade agreements and
assistance."

At risk

Wahono also gave warning that the results of the painstaking
development would be at risk if the widening gulf between the
rich and the poor remained unchecked.

"It needs serious efforts to fill in the widening economic
gap," he said.

The economic gap, if it continues unchecked, would make the
rich superior and the poor to harbor social "jealousy", a
situation that would put the existing development fruits in
danger, he said.

The House speaker's remarks were the latest in a spate of
warnings on the notorious unequal distribution of the state
wealth over the past week.

Senior economist Sumitro Djojohadikusumo was the first who
raised the alarm last week. Echoing Sumitro's concern was State
Minister of Research and Technology B.J. Habibie, who blamed the
situation largely on the banks which favor large-scale businesses
in issuing credits.

Occasional violent rioting against Chinese descendants, the
minority group which dominates Indonesia's economy, is widely
seen as public discontentment of the unequal economic
distribution of state wealth.

Wahono pointed out that the large number of Indonesians living
below the poverty line had added to the sensitivity of the
economic gap, an old issue which keeps simmering but is never
resolved.

"Special attention should be given to rural areas, isolated
communities and transmigration sites," said the retired
lieutenant general and former boss of the government-backed
Golkar political grouping.

According to official figures, 27 million of the 185 million
Indonesians still live in absolute poverty, mostly in rural
areas. (pan)