Wed, 04 Aug 1999

Reformist parties urged to share an economic platform

JAKARTA (JP): Noted economist Emil Salim urged a trio of major "reformist" political parties on Tuesday to form a common economic platform to help solve the country's economic problems.

Emil said that the Indonesian Democratic Party of Struggle (PDI Perjuangan), the National Awakening Party (PKB) and the National Mandate Party (PAN) should create the shared platform as a guideline for a new coalition government.

"Since PDI Perjuangan led in the (June 7) elections, it should be the one who's proactive in talking to PKB and PAN," he told a seminar on the economic platforms of the three political parties. It was organized by prestigious think tank the Center for Strategic and International Studies (CSIS).

He described it as a realistic suggestion since the major economic programs of the three parties were mostly similar.

Emil, one of the country's economic architects during the golden era of the ruling Golkar Party, noted the three parties were not against the market economy.

"The three also consider the important role of the government to provide a level playing field for the business sector, and are committed to developing provincial economies," said the U.S.- trained economist.

PDI Perjuangan, PKB and PAN, part of the country's top five political parties, are regarded as the true reformist parties and the most serious challengers to the long rule of the Golkar Party, the political vehicle of the Soeharto government.

Although PDI-P won 33.7 percent of the June legislative elections, the party did not gain enough votes to form a single- majority government.

Uncertainty over the next leadership has fanned increasing calls for the three parties to form a coalition and shut out a the possible return of Golkar to power.

Economists from the three reformist political parties welcome Emil's suggestion.

"The suggestion of Pak Emil is not something impossible to realize," said S.G.B. Tampubolon, a PDI Perjuangan economic adviser.

"Three heads are better than one."

He said that he would recommend that his party immediately hold discussions with the economic teams of PKB and PAN.

"But I'm not in a capacity to answer the question whether we're going to form a coalition, although I personally believe that it would be a good thing because who else could we talk to?"

Yusuf Faishal, head of PKB's economic department, agreed that the economic programs proposed by the three parties were relatively similar.

After speaking in seminars with economists from the other two parties in recent months, he noted a seeming convergence in their programs.

"It's no longer clear who's duplicating whose programs," he said.

PAN secretary-general Faisal Basri said that the prospect of forming a common economic platform was strong enough because the country's major political parties often met to discuss various issues.

The country has been battered by the economic crisis which started in July 1997. The economy contracted by 13.68 percent last year, putting millions of people out of work and increasing the number of Indonesians living below the poverty line.

The government adopted economic programs sponsored by the International Monetary Fund (IMF) in an effort to right its economic problems.

Several economists have said a new government might demand the tough economic programs be renegotiated with the IMF.

The presidential election is scheduled for November. PDI Perjuangan chairwoman Megawati Sukarnoputri and incumbent President B.J. Habibie, who is supported by Golkar, are the leading contenders. (rei)