State Policy Guidelines offers progress but leave gaps

State Policy Guidelines offers progress but leave gaps

By Sri Wahyuni

JAKARTA (JP): The People's Consultative Assembly (MPR) last
night endorsed the 1998/2003 State Policy Guidelines, the
blueprint for national development over the next five years.

Drafted by the ruling Golkar faction before Indonesia plunged
into severe economic crisis last year, the policy guidelines
promise progress, are full of hope, but also contain gaps
inviting criticism.

The United Development Party (PPP) have said that the
Guidelines do not give adequate attention to the economic crisis.

Another critic, business tycoon Probosutedjo, said that unless
something was done to reverse the crisis in the next few months,
social unrest would result.

On the other hand, those who believed the document to be
sufficient argued that the crisis had been "implicitly" discussed
in chapter IV and the conclusion, which describe the challenges,
and obstacles facing the country in the near future.

Some of the proponents dismissed the criticism, arguing
instead that the economic crisis, which has brought the economy
to a standstill and rendered millions unemployed, was "technical"
in nature.

As such, it should not be discussed in the broad guidelines on
state policy. If included, the document would have to be renamed
the "narrow guidelines on state policy", they said.

The State Policy Guidelines have received praise from the
People's Consultative Assembly (MPR), which deliberated the
document in the first stage of the General Session, held between
Nov. 1997 and Jan. 1998.

The second stage, now taking place, endorses the document and
elects a president and vice president.

Many legislators in the Assembly agree that the document is
progressive compared to the previous six policy guidelines
endorsed during the New Order administration.

At least five new sections have been introduced in this year's
guidelines: Two new sectors on economic development policy, two
on legal development policy, and a fifth section is devoted to
people's welfare, education and cultural development.

The new guidelines on economic development policy separate
land affairs and investment, not the case in the 1992/1993 State
Guidelines.

Specific arrangements are considered necessary for land use
policy due to limited land availability and a growing population.

The land affairs section addresses how the new government
should manage land ownership and spatial planning, and develop
adequate legislation to enforce land management policies. Use of
Geographical Information Systems (GIS) is also given special
mention.

Forest

Economic development is divided into 20 different sections.

In addition to land affairs and investment, the document
discusses development of industry, agriculture, cooperatives,
trade, manpower, transportation, tourism, mining, energy,
forestry, rural development, transmigration, finance, marine
resources, the space program and the environment.

Particular emphasis is made of the need to exploit natural
resources sustainably, so that both present and future
generations can benefit from these resources.

Forestry developments should proceed in a way consistent with
improving the role of the domestic industry, increase value-added
production and creating new jobs. Mining activities should bring
improved welfare and development around mine sites.

On energy development, the policy guidelines undertake to
guarantee self-sufficiency. Efforts to develop and maintain
energy resources, diversify and economize on energy use, and
increase the use of renewable energy resources should be
enhanced.

The importance of funding development from the nation's own
resources is stressed. Foreign resources should be treated as
complimentary.

Government fund raising and saving should be undertaken within
the framework of balanced and dynamic fiscal policies.

Public saving is to be improved through monetary policies
which guarantee the stability of the rupiah, boost economic
growth and promote efficient financial and banking institutions.

The Guidelines give great attention to efforts to boost
investment. The need to mobilize funds, both locally and from
abroad, to boost investment activities is acknowledged, as is the
need for a liquid, transparent and efficient stock market.

Deregulation, a reduction in bureaucracy and consistently
implemented macroeconomic policies are needed to create a more
transparent and healthy business and investment climate.

Rights

The new Guidelines place Human Rights and Legal Culture in two
new sections under legal development policy.

Ary Mardjono, a Golkar representative at deliberations of the
draft guidelines, said that the two new sections had been
introduced to accommodate demands for human rights promotion and
the important role of law in the future.

The inclusion of human rights follows an intense debate last
year over whether a separate Assembly decree was needed on the
issue, or if inclusion of human rights in the Guidelines was
sufficient.

The next general election, in 2002, should "more actively
involve" the contesting political parties, especially in the
planning, organization and supervision of polling. These
arrangements will apply at all levels of the community, in rural
and urban areas.

This is expected to appease the frustration of the minority
Indonesian Democratic Party and United Development Party, who
have for many years protested that the polling system placed them
at an unfair disadvantage.

Progress

Since 1968, President Soeharto's New Order government have
worked around five-year national development plans, known as
Repelita. The government also run 25-year development plans,
known as PJP.

The 1998/2003 State Guidelines is the second set of guidelines
which have discussed the 25 year plans. The main purpose of the
long-term plans are to bring Indonesia toward the beginnings of a
prosperous, just and self-sufficient society based on the state
ideology Pancasila.

The Guidelines document consists of six chapters. The
introduction defines the Guidelines and details the function,
purpose, basis and scope of the exercise.

The second chapter explains national development. The third
chapter explains the second long-term development plan, PJP II.

Chapters four and five explain the next five year development
plan, repelita VII, and how this plan will be carried out
respectively. The final chapter concludes the document.