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Soeharto promises openness

| Source: JP

Soeharto promises openness

JAKARTA (JP): President Soeharto promises the government will
encourage openness and democracy in 1997, but warns the nation
against letting "new ideas and aspirations" rush out of control.

"The government is encouraging openness and...democracy... But
we must adhere to rules so that no new ideas and aspirations get
out of control," Soeharto said in a televised year-end speech on
Tuesday.

"This is why we should hold on to the state-ideology
Pancasila, the 1945 Constitution and the Broad Guidelines of
State Policies and uphold national interests and unity," he said.

Soeharto reviewed what the nation achieved in 1996, concluding
that, in politics, new ideas emerged to reinvigorate democracy.

"We welcome those fresh ideas with an open heart. We fully
realize that progress brought about by development has sharpened
people's critical minds and given birth to new expectations and
aspirations," he said.

The country witnessed some social and political organizations
consolidating themselves in 1996, he said. "It's in our interest
that all social and political organizations become solid and
function well. Especially because we're preparing for the general
election (in 1997)."

He said 1996 was marked with upheaval caused by various
social, cultural, political, economic and religious tensions. No
matter how minor, each upheaval, unless it had been handled
immediately, could have harmed the greater interests of the
nation.

"This is why we need to prevent those upheavals recurring. We
have to be able to place the interests of the nation above the
interests of individuals or groups," he said.

He said that everybody had to stay clearheaded, openhearted
and unemotional to handle upheavals properly.

The President did not say this, but some of the ugliest
rioting and violence occurred in Indonesia last year. They
include the June attack against migrants in East Timor, the July
riots in Jakarta and the attacks on churches in Situbondo, East
Java, and Tasikmalaya, West Java, in October and December.

Success

Soeharto listed some of the country's economic successes in
1996.

He said 810 new domestic investment projects were approved
which were worth Rp 100.7 trillion (US$42 billion) and so had 959
foreign investment projects worth $29.9 billion.

The economy grew by 7.8 percent, still high although it is
lower than the previous year's 8.2 percent growth.

Inflation was under control at 6.7 percent, compared to 8.6
percent in the previous year.

The government would continue to support tourism, which
attracted five million visitors to Indonesia in 1996, up one
million on 1994, he said.

"We plan to make tourism the largest source of foreign
exchange earnings at the end of the Seventh Five-Year Development
Plan (in 2004)," he said.

Soeharto said that, besides generating much-needed income,
tourism would allow the country to expand its economy, which
affected the lives of many people, and helped cause a fairer
distribution of the fruits of development.

Tourism is the country's third largest source of foreign
exchange, after oil and gas and textile and garment. Earnings
from tourism in 1996 are expected to reach US$6.18 billion.

Despite considerable progress, Soeharto said, much work must
be done to reduce the gap between rich and poor, through poverty-
alleviation and development programs for small and medium
business.

"Together, we must strengthen our competitive edge in goods
and services in 1997 to capture the dynamic challenges and
opportunities of the domestic and global marketplace," he said.

"Our participation in the international arena has allowed us
to lay the groundwork for our country," he said.

He cited Indonesia's foreign policy as an effective tool in
the peace process in Bosnia and in the Middle East and which
helped end the conflict in the southern Philippines.

Indonesia, with its nonoil and gas export drives, would
continue to promote economic cooperation with countries which
were not members of economic associations, he said.

The associations include the Association of Southeast Asian
Nations, the Asia Pacific Economic Cooperation forum, the World
Trade Organization and the Organization of Islamic Conference.

Soeharto pledged to continue the country's high-technology
accomplishments in light of the successful 1996 Indonesian Air
Show. The event would be held every two years under the title of
the Asia-Pacific Science and Technology Show.

He acknowledged that the country's biggest challenge was to
develop highly skilled human resources, the leading barometer of
a country's ability to compete in the competitive global
marketplace. (01)

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