Wed, 20 Oct 1999

New State Policy Guidelines approved

JAKARTA (JP): The People's Consultative Assembly (MPR) approved on Tuesday the State Policy Guidelines for the period 1999 to 2004, with a focus on developing the supremacy of law, good governance and lifting the country from the economic crisis.

The policy guidelines, known by their acronym GBHN, were unanimously approved in a plenary session presided by MPR chairman Amien Rais.

They will be presented to the new President after the inauguration on Wednesday evening.

In a major difference from the GBHN adopted during the 32-year rule of Soeharto, which only contained directives for the president, the new set of guidelines stipulates directives for the President as well as other high state bodies, including the House of Representatives (DPR), the Supreme Court, the Supreme Advisory Council (DPA) and the Supreme Audit Agency (BPK).

Under the new guidelines, the President and other state bodies must account for the execution of the policy guidelines in the General Session of the MPR.

Under the previous policy guidelines, the president accounted for the implementation of the policy guidelines only at the end of his five-year tenure.

The new GBHN cover eight broad sectors -- the law, economy, politics, religion, education, social life and culture, regional development, natural resources and environment, defense and security.

Economic policy guidelines dominate the document.

The guidelines direct the government to create a market-based economy with healthy and fair competition and to prevent monopolistic and corrupt market practices.

The government is required to give special attention to the development of small and medium-size enterprises and cooperatives amid the free-market structure.

The GBHN rule that foreign loans must be decreased gradually in a bid to develop a sound state budget with a low deficit.

They also order the new government to renegotiate and restructure external debts in cooperation with the International Monetary Fund (IMF), World Bank and other creditors and to ask for House approval for new foreign borrowing.

They list priority programs to cope with the economic crisis such as price and currency stabilization and the acceleration of bank and corporate restructuring.

The government is also obliged to promote the supremacy of law, create a culture of law among the people, uphold human rights and improve the welfare and the quality of law enforcers, including the National Police.

The GBHN set directives for the new government to create a good and clean administration free of corruption, collusion and nepotism.

They require the auditing and disclosure of the assets of senior officials before and after their tenure in a bid to prevent corruption.

The guidelines also call for civil service reform through better pays, better promotion and training systems.

In the chapter on defense and security, the policy guidelines set directives for the new government to eliminate the uncontested seats of the military in the legislature.

They also instruct the next government to take concerted measures to improve the image of the military and police and to strengthen their role as the protector of people, enhance their participation in development programs and help develop democracy and uphold human rights.

On regional development, the GBHN order the new government to accelerate the development of outer provinces, particularly the eastern part of the country.

The new government is required to give provincial administrations greater responsibility in administering investment licensing in their respective areas and manage their own natural resources.

MPR members also agreed to insert clauses on special autonomy for Aceh and Irian Jaya and efforts at reconciliation in Maluku. (jsk/rei/05)