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.