--- PRD Indonesia <[EMAIL PROTECTED]> wrote: > Date: Mon, 30 May 2005 02:29:32 -0700 (PDT) > From: PRD Indonesia <[EMAIL PROTECTED]> > Subject: Dita Sari: Several basic questions for > Indonesian economists > To: bonnie <[EMAIL PROTECTED]>, > Rev Diary <[EMAIL PROTECTED]>, > Maoist Guns <[EMAIL PROTECTED]>, > IHRC-NZ <[EMAIL PROTECTED]>, Red Part > <[EMAIL PROTECTED]> > CC: [EMAIL PROTECTED], zely ariane > <[EMAIL PROTECTED]>, > James Balowski <[EMAIL PROTECTED]>, kpp prd > <[EMAIL PROTECTED]> > > Jakarta Post, 30 May 2005 > > Several basic questions for Indonesian economists > > Dita Indah Sari, Jakarta > > The debate over the pros and cons of the fuel price > increase has begun to become dreary. Even though in > many regions voices of opposition can still be > heard, > the peak of the debate has already passed. > > Unlike previous plans to increase the price of fuel, > this time the polemic between economists in the mass > media was both extensive and open. The opinion pages > of many newspapers were filled with articles > criticizing each respective position. This is a > positive development, not just for the academic > community but also for the general public, because > the > people were exposed to and able to consider > alternative thinking. > > However, separate from this, the debate that emerged > in the mass media and at seminars failed to touch > upon > a fundamental solution for our economy. It is true > that the neo-liberal economic policies of the > government have been subject to open criticism by > many > economists. The criticism of the continued > dependency > upon the International Monetary Fund (IMF), for > example, pressured the government to formally end > its > cooperation with the IMF at the end of 2003. > > There has also been no shortage of critics of other > policies that are neo-liberal in orientation, such > as > the reduction of import tariffs, the removal of > minimum taxes, privatization, the basic cost of > unhulled paddy, the reduction of fertilizer > subsidies, > etc. However, once again, the solutions being > offered > are partial and do not yet constitute an alternative > packet that is both structurally and operationally > different from what has been carried out up until > now. > > > One fundamental question that is often put forward > is > how to transform agrarian production in this country > into a modern agriculture industry. Changing the > mode > of traditional agriculture with its low productivity > will only be possible if it is accompanied by growth > in basic industry, which must be capable of > producing > engines, fertilizer and seeds that can be accessed > by > farmers at the lowest possible cost. > > The restructuring of national industry needs to be > prioritized in order to fulfill the needs of the > rural > sector, because it is this sector that has the > highest > rates of unemployment. > > Our economists have yet to put forward a clear plan > of > action in relation to this. There was fierce protest > over the removal of fertilizer subsidies. However, > the > concept of national industrialization focused on the > rural sector has not yet become a strong enough > platform from which to challenge government policy > (and that of their economists), which prefers to > surrender the future of Indonesian farmers to the > "wisdom" of the market. > > There has not been a concrete proposal as to how to > maximize existing resources and potential in order > to > develop basic industry. > > The abandonment of two fertilizer factories in Aceh > is > a clear example of how the development of national > industry has not been a priority for the government > of > Susilo Bambang Yudhoyono and Jusuf Kalla. What are > the > solutions being offered by economists to resolve > these > problems? > > There also has not yet been a debate regarding how > to > overcome the problem of dependency upon imports, > which > constitutes the main structural problem of our > nation's economy. Even though this dependence has > long > been known as the cause of the high cost of > production, there has yet to emerge a clear > alternative that clearly articulates the steps that > must be prioritized in order to overcome this > dependence. > > Successfully developing basic industry is the first > step toward reducing our dependence upon imports. > Material and technological capital that we can > produce > ourselves is not only capable of reducing production > costs to the point that they are competitive, but in > the longer term can also create a stronger and more > stable economic structure. Moreover, Indonesia is > such > a rich country, filled with natural resources. Why > have economists not objected to this export > orientation on raw goods? Particularly considering > that raw good exports are followed by the import of > consumer goods from overseas countries, which, > ironically, get their raw materials from Indonesia. > > Is it necessary to limit the export of raw goods and > agricultural produce, so that these goods can be > used > to revive national industry? Is it necessary to > limit > natural gas exports to Japan and South Korea in > order > not to disturb the national fertilizer industry? If > human capital is crucial for economic productivity, > is > it necessary to prohibit completely the > privatization > of the pharmaceutical industry, health care and > education? > > Why is the State Logistics Agency (Bulog) only > concerned about distributing and stabilizing the > price > of rice? What about the other agricultural and > manufacturing products? Who is responsible for > protecting their markets and prices? Should labor > flexibility and the work contract system be > maintained > when there is no social safety net for those who are > fired or made redundant? > > There are many questions that have yet to be > answered > by our economists. Alternative ideas that oppose > mainstream economics, however, do not receive > attention in the mass media. This is the reality. > However small the space for discourse may now be, it > is time to clearly differentiate between the > different > concepts and types of economic thinking. > > The battle between economists is the consequence of > a > constantly changing political situation, which > forces > people to make a choice. The people, in making a > choice in accordance with their own interests, need > something to guide them. Without alternative ideas, > conveyed in their entirety, the people will have a > difficult time imagining what this "better > Indonesia" > will look like. > > The writer is chairwoman of the Democratic People's > Party (PRD). She can be reached at > [EMAIL PROTECTED] > > Free all the Political Prisoner, > STOP 'Secret' War in Aceh - Papua > Withdraw TNI form Aceh: Ceasefire Now for Self > Determination > Extend Democratic Dialog for Papua People > Unite and Struggle to Establish the Government of > United People for Indonesian Socialism > STOP Imperialist Permanent War trough anti > war-imperialism movement's unity > Another World - Another Power - People Power IS > POSSIBBLE ! > > Central Leadership Committe - People's Democratic > Party (KPP-PRD): > > Zely Ariane > (Departement of International Relations) > > Jl. Tebet Utara II No. 9 > Jakarta Selatan 12810 Indonesia > Telp. (62)(21)8291745 > Mobile. (62)815-8126673 > > > > __________________________________ > Do you Yahoo!? > Yahoo! Small Business - Try our new Resources site > http://smallbusiness.yahoo.com/resources/ >
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