'People-oriented-economy' needed

'People-oriented-economy' needed

JAKARTA (JP): Noted economist Sri Edi Swasono said yesterday
that the reform era and the economic crisis had served to provide
an appropriate impetus for Indonesia to develop a populist
economy.

The University of Indonesia professor told a discussion held
by alumnae of Yogyakarta's Gadjah Mada University that the
current export-oriented system, maintained for 32 years by former
president Soeharto, had proved unsustainable and resulted in the
prolonged crisis.

"The economic collapse has brought a new awareness of how
important a people-oriented economy is," he said.

He said the worst sin committed by the New Order regime under
Soeharto was the establishment of an economy dominated by a small
group of people, which caused the gap between rich and poor to
widen considerably.

He said the gap was a serious threat to national unity and
said the explosive power which the gap could unleash "became a
reality in May, when riots rocked several cities in the country."

Bungaran Saragih from Bogor Institute of Agriculture also
spoke out in support of a people-oriented economy, the enemies of
which he said were idle megaprojects, mega-companies and hi-tech
industries.

"Those enemies should be quashed," Bungaran said.

The previous administration, he said, had established "mega-
companies and encouraged megaprojects, except Megawati
(Soekarnoputri)."

The government also adopted the wrong approach to
industrialization, he said, which had resulted in the majority of
people failing to benefit from increasing development.

"Industrialization has failed to improve the people's
welfare," he said.

He cited the one million hectare farming project in Central
Kalimantan, which is under threat of total failure as a result of
poor harvests and the monetary crisis.

Bungaran proposed that the agribusiness industry and
cooperatives be developed to meet domestic demand for food and
said this would help insure the country against future shortages
of basic commodities.

Yogyakarta's traditional monarch Sultan Hamengkubowono X, who
opened the meeting, said a new economic system which empowered
the majority should be laid in place.

He said that a social-market economy needed the government to
act as a facilitator and to guarantee the people their economic,
democratic and human rights.

He said that reform in the political field should be pushed
forward to create a civil society and to uphold democracy. (rms)