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No major change likely before 2000

| Source: JP

No major change likely before 2000

JAKARTA (JP): Indonesia can expect more democratization of its
economic and political life only when a new generation assumes
power after the turn of the century, experts believe.

Emil Salim, a former cabinet minister and now a professor at
the University of Indonesia, ruled out the possibility of major
political changes in the near future as long as the so called 45-
generation is still in power.

"Don't expect any political change next year or in 1998, but
in 2005, when the new generation, the 66 generation, assumes
power with the spirit of reformation," Emil said at a seminar, on
national development hosted by the Centre for Strategic and
International Studies.

The 45-generation refers to those who struggled for
Indonesia's independence in 1945 and the 66-generation to those
who struggled for the establishment of the New Order
administration under President Soeharto in 1966 in the aftermath
of the attempted communist coup in September, 1965.

Emil -- who served several terms in previous cabinets, lastly
with the portfolio of the population and environment -- believes
that the new generation, when it assumes power, will pave the way
for drastic political changes resulting in greater
democratization.

He suggested that those in power should now implement massive
deregulation measures not only in the economic sector but also in
the political field to pave the way for the new generation to
assume power.

"Economic and political deregulation are two sides of the same
coin," Emil said.

He noted that the current success of Indonesia's economic
development has been achieved partly through a number of economic
reforms, which have eventually opened up the country's economy
and partially integrated it with the global economy.

The former minister suggested that Indonesia should further
improve the quality of its human resources, reappraise its
macroeconomic policy and strengthen its economic structure to
maintain its high growth momentum.

Such policy adjustments, according to Emil, will enable the
economy to grow by at least seven percent per annum, thereby
doubling the country's gross domestic product from last year's
level of some Rp 400 trillion (US$170 billion) by 2005.

By that time, Emil said, Indonesia's economic structure will
be dominated by the manufacturing sector, supported by trading
and financial services. And the development process, he
continued, will take place in a healthy democratic political
environment, with respect given to universal values.

Sharing Emil's view, economist Sjahrir noted that Indonesia
had successfully transformed its economy into a world-market
economy but failed to upgrade its political infrastructure.

"While our economy is going global, our politics are still in
the era of Jurassic Park," Sjahrir said in reference to a film
set in the age of the dinosaurs.

Sjahrir noted that such an old-fashioned political structure
had created an oligopoly.

He noted that last month's rioting in the city, which left
four people dead and tens of others injured and tens of millions
of dollars in material losses, was partly triggered by people's
discontent over the widening gap between the rich and the poor
and between the economic and political development.

The rioting proves that the emphasis on political stability
has failed to accommodate the people's dynamism as the current
system prefers a status quo to any political change.

Such a policy has made the government defensive and reactive
towards international pressures, especially with regard to issues
on improved democratization, human rights, the environment and
labor standards, Sjahrir said.

Emil, however, believed that the current sweeping era of
social, economic and political globalization would eventually
force Indonesia to accept such universal values. (rid)

Siswono -- Page 2

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