'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)