Wealth gap threatens national unity: Experts

Wealth gap threatens national unity: Experts

By Wahyudi M. Pratopo

JAKARTA (JP): As officials grow more concerned with the
possibility of national disintegration, two leading scholars say
Indonesia could prevent such a process from taking place by
tackling the problem of the widening gap between the rich and
poor.

Juwono Sudarsono of University of Indonesia and Mubyarto of
Gadjah Mada University are calling for a revamping of the
government's economic development policies, which they feel
should give greater attention to the needs of average people and
less to powerful conglomerates.

"Now it's the time for the government to stand up for the poor
and weak people after supporting the powerful businesses for so
long," said Mubyarto, an economist who is also an aide to the
Chairman of the National Development Planning Board (Bappenas).

"Indonesian leaders will have to make more serious efforts to
overcome imbalances between the powerful business groups and the
vast majority of people who still live below the poverty line,"
said Juwono, a lecturer on international politics and a deputy
governor of the National Reliance Institute (Lemhannas).

The two men were speaking on Tuesday at a one-day discussion
on national resilience at the University of Indonesia. The
seminar, which featured the two scholars as speakers, was jointly
organized by the state-run university and Lemhannas, a think tank
agency of the Ministry of Defense and Security.

Lemhannas Governor Lt. Gen. Moetojib said in keynote address
that the threat of national disintegration has been further
augmented by the rapid process of globalization.

Moetojib said the weakening sense of nationalism among
Indonesians is another factor that could lead to the breaking up
of the nation. "As a heterogeneous nation, we have to watch out
for even the smallest factors that could lead to disintegration."

University of Indonesia Rector M.K Tadjudin in his opening
remarks also pointed out that history has shown that the rise and
fall of nations were often related to aspects of welfare as well
as security.

As Indonesia is marking its 50th independence anniversary,
government and military officials have warned of threats to
national integrity.

The breaking up of the former Yugoslavia, the former Soviet
Union, and the ethnic wars in Bosnia-Herzegovina and Chechnya
have raised concerns here at home that Indonesia, a sprawling
archipelago nation of diverse ethnic and tribal groups and
cultures, could follow suit if preventive actions are not taken.

Juwono said the increasing income disparity between the rich
and poor could set off conflicts between the rich and the poor
and even take on racial, ethnic or religious overtones.

He said that one way of redressing the imbalance is to change
bank credit policy by giving small and medium enterprises more
access to loans. "A major transformation of the credit structure
must be instituted through concerted government political will
and action," he said.

Mubyarto, an economist that has long looked at the problems of
poverty in Indonesia, said the government has made the right
start with the launching of the presidential aid program
specifically for the poor.

Known by the Indonesian acronym IDT (Inpres Desa Tertinggal),
the program was launched in April last year. Under the program,
the government sends out parcels of Rp 20 million to more than
20,000 villages in the country with large populations of poor
people. The money is given directly to community groups, who then
decide for themselves how the money will be allocated.

Results from the first year of the program have been very
encouraging.

Mubyarto said that while one of the chief objectives of the
IDT program is to bridge the wealth gap, gaps between regions and
between rural and urban areas could also be narrowed.