By Andi Abdussalam
Jakarta, May 21 (ANTARA) - These days the liberalism-based market mechanism has all of a sudden become the most 'dreadful' economic label for some quarters in Indonesia in the run-up to the upcoming July 8, 2009 presidential race.
Presidential aspirants are trying to convince the public that they are advocates of pro-people economy. This is because economic demagogues and anti-neo-lib demonstrators have 'opened' fire at a vice presidential hopeful whom they believed to be an accessory to neo-liberal economy.
The naming of Boediono, a true professional and a technocrat, as a vice presidential candidate by Democratic Party presidential hopeful Susilo Bambang Yudhoyono (SBY) was met with resistance and rallies. "Boediono, No! Budi Anduk Yes," one of the banners read, referring to comedian Budi Anduk.
Apparently, Boediono, who was the central bank governor and finished his doctorate degree in Wharton School University of Pennsylvania, the United States, was seen as a pro-liberalism economist.
Opposition to liberal economic concept prompted presidential candidates to explain their pro-people economic programs. In the coming presidential polls, there are three presidential tickets.
Besides SBY-Boediono pair, Golkar Party Chairman Jusuf Kalla pairs up with Wiranto (JK-WIN). Wiranto is the general chairman of the People's Conscience Party (Hanura). The other pair is Mega-Pro which sees the combination of Megawati Soekarnoputri, leader of the Indonesian Democratic Party of Struggle (PDIP) and Prabowo Subianto, chairman of the Greater Indonesia Movement Party (Gerindra).
The SBY-Boediono pair denied it had adopted neo-liberalism concept. "We do not adopt neo-liberalism. Many people talk about neo-liberalism but they do not understand what it is," he said when he spoke to a dialog organized by the Indonesian Chamber of Commerce and Industry (Kadin).
His running mate Boediono also rejected the neo-lib label. "I want to argue and protest allegations that I am a pro-western economist. I am an Indonesian economist. I pursue studies in any region in Indonesia. So there is no need to label me as a pro-Western economist. Indonesia is my motherland," Boediono said.
According to Yudhoyono, who is also incumbent president, in the past five years of his government, his administration had carried out many market interventions without merely leaving the problem to multinational companies.
He said he was not a man who only wanted to achieve economic growth as high as possible while ignoring equitable distribution to the people. He admitted he did not believe the economic theory of trickle down effect where economic growth would start from the upper class and then trickle down to the people of lower economic class.
"That does not work in developing countries. In the future there should be no longer a growth in part but in other part there people are only waiting for assistance," he said.
Likewise, Boediono rejected allegations that he was a pro-liberalism economist. He said he was very sad to hear the allegations because throughout his long career he had been serving the nation.
"So, I will say that national economic resilience is a strong economic form which will continue to be given attention to. In the current globalized world we have to develop pillars which support national economic resilience," he said.
Yet, according to DR Marzuki DEA of the Makassar-based Unversity of Hasanuddin, it could be observed that Yudhoyono in the past five years of his government relied much on foreign assistance and tended to produce policies that supported middle and upper scale businesses.
Economic analyst Revrisond Bawir of the University of Airlangga said Yudhoyono relied much on external debts. Indonesia external debts which fell due in 2009 amounted to US$6,485 million. It increased three-folds compared with those maturing in 2008.
In this case, Yudhoyono and Kalla have a lot of different views over the economic policies. That's why, both of them could not be united not only because of political reasons but also of different views over economic policies, Marzuki said.
He said Yudhoyono saw Boediono as a person who was able to translate his economic vision and mission. "Boediono is more able to translate Yudhoyono's economic ideas which tend to carry out liberal economy on the assumption that with liberal economy poverty and unemployment could be overcome," Marzuki DEA said.
Kalla, who is currently vice president, is opposed to dependence too much on foreign capital and advocated the development of a self-reliant national economy. "We can be self-reliant because we are able and rich in natural resources. So far, we have not yet used our own capabilities to exploit our own natural resources," Kalla said.
He said so far Indonesia had depended too much on foreigners. The development of airports in the country in the past 60 years, for example, were still carried out by contractors from Japan and France. Besides, the competitive edges of local products also needed to be improved so that they would be able to compete with imported ones.
Basically, according to economic analyst Fadhil Hasan of the Institute for Development of Economics and Finance (Indef), Kalla's economic mission is to promote the nation's competitive, fair and reliant economy. This concept will further be translated into the reinforcement of micro-small and medium business programs and of food resilience and land reform.
"The idea is that it would be different from the present condition where the distribution of equitable economic gains is not created and the income gap is still widening," Fadhil Hasan said.
In the meantime, he said, Megawati who paired with Prabowo Subianto would promote extremely pro-people economy and would take radical steps in improving the welfare of fisherman, farmers and low income people.***1*** (T.A014/A/H-NG/A/S012)
(T.A014/A/A014/A/S012) 21-05-2009 21:41:06
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