Indonesian Political, Business & Finance News

Soeharto wants provinces to be self reliant, competitive

Soeharto wants provinces to be self reliant, competitive

JAKARTA (JP): President Soeharto urged leaders of Indonesia's
27 provinces yesterday to strive to become more self reliant and
competitive in order to face the advent of the global free trade
era.

"Regional self reliance and competitive advantage are the real
essences of regional autonomy," Soeharto said during a meeting at
the State Palace with governors and speakers of legislative
councils of all the provinces in Indonesia.

Soeharto defined self reliance as the ability to solve
problems independently, and competitiveness as the drive to
become the best.

"The need for greater self reliance and independence is real
because we are now entering a new era: The era of global free
trade and investment. This era is filled with both opportunities
and challenges," he said.

The governors and legislative council speakers have been in
Jakarta for the past few days for their annual briefing by
central government officials on policies and objectives for the
upcoming 1995-1996 fiscal year which begins on April 1.

The main theme of their meeting, one which cabinet ministers
during their briefing also repeatedly emphasized, is greater
regional autonomy through decentralization of the administration.

The government has been meaning to give greater autonomy to
the provinces, the regencies down to the district offices, but
the drive has been slow because the regional administrations are
not ready to shoulder the responsibility.

Soeharto reiterated yesterday the government's commitment to
greater regional autonomy which he underlined as very important
to step up, expand and deepen national development.

He emphasized that greater regional autonomy is intended to
encourage a greater people's participation in national
development.

The government, he said, could only encourage the regions to
become more self reliant and competitive up to a point. A lot
depends on how the people respond to these challenges.

The President recognized that some provinces are better placed
than others in facing the challenges of free trade.

"Regions that are already well prepared must continue to
improve their capabilities. Regions that still have not become
fully self reliant and competitive must do a lot of catching up."

The central administration will assist regions that are still
trailing, paying special attention to the development of border
areas, isolated regions, and of "economic growth centers", he
said, adding, "We're consciously implementing the principle of a
unitary state, in which one region helps another."

Indonesia, Soeharto said, needs to combine all its potentials
in facing the challenges. "Only this way can we tap all the
opportunities opened up by the free trade and investment system."
(emb)

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