Soeharto openly laments people's suffering

Soeharto openly laments people's suffering

JAKARTA (JP): President Soeharto openly lamented the growing
torment and increased poverty faced by the people due to the
economic crisis which has become so bad that even some mothers
cannot afford to buy milk for their children.

But Soeharto avowed that the nation would persevere as it has
many times in the past.

"We are a nation of fighters who do not bow in the face of
challenges... We must not lose hope," he said in a written
speech which was read by all 27 governors in their respective
provinces yesterday.

The speech presented the 1998/1999 list of projects.

He admitted that the government had not succeeded in resolving
the economic situation and that some earlier policies had even
contributed to the crisis.

"We need introspection and to review various polices and
sectorial strategies we have followed so far which directly or
indirectly caused the monetary crisis.

"Various government policies aimed at handling the crisis have
not fully succeeded," he admitted.

Soeharto could not hide his concern over the plight of the
people, acknowledging that per capita income had dropped. "This
means that more people became poor in the last nine months."

The President also lamented massive layoffs of workers and
sympathetically noted the plight of housewives and mothers: "Home
industries which have been able to provide daily needs like the
tempe and tahu industry can no longer function. Even mothers can
no longer provide powdered milk for their babies."

Indonesia has been hit by its worst economic crisis in the
last three decades. Even Soeharto had to admit yesterday that the
planned take-off stage of national development would be hampered.

"The reality is that our standard of living has dropped," said
the President in his statement, adding that the 1998/1999 State
Budget "was not as what we had hoped."

He pointed to the manufacturing industry as one of the worst
hit mainly because its components were imported.

But he still offered words of hope concerning businesses
dealing in goods with a high level of local content such as
enterprises related to the agricultural sector.

According to Soeharto, the government had taken steps to rid
itself of monopoly and other trade impeding practices, but these
steps alone were far from enough.

He said much laid in the hands of parents and teachers in
helping to develop human resources which he described as being
the nation's main asset.

In presenting this year's project list, Soeharto noted that
there was a nominal increase in development funds for the
provinces from Rp 9.9 trillion last year to Rp 10.1 trillion this
year.

He said even with the limited funds, the pace of development
must continue and focus on poverty alleviation.

A large portion of the funds would be allocated to
Presidential Instruction programs (INPRES) which accounted for Rp
7.1 trillion.

Soeharto said projects worth less than Rp 500 million would be
fully managed by local administrations.

The Presidential Instruction programs cover projects such as
the Least Developed Villages fund (IDT), which disburses working
capital to underdeveloped villages, and the construction of basic
infrastructure including schools, roads and community health
centers.

The funds in the project list account for only 6.9 percent of
the 1998/1999 state budget which was approved in February by the
House of Representatives. (prb/mds)