SBY's war on poverty

The Jakarta Post ,  Jakarta   |  Fri, 02/02/2007 4:34 PM  |  Opinion

President Susilo Bambang Yudhoyono did not spring any surprises in his State of the Nation speech, such as announcing the sacking of incompetent or problematic Cabinet members. He did, however, show that he worked hard to fix the problems confronting the nation. He was honest in assessing the inability of his government to revive ailing foreign investment in Indonesia. He attempted to encourage the nation not to feel desperate in facing its current economic hardships. He also expressed confidence that he was on the right track in helping the nation rid itself of its gigantic problems.

However, while acknowledging that what people need are concrete solutions, the President failed to come up with real and reachable programs to combat rampant poverty. Just like his predecessors, he was very eager to highlight his government's quantitative achievements.

The President attempted to reach out to the nation Wednesday evening in his pre-recorded 2007 State of Nation speech, which was aired by state channel TVRI. As the first Indonesian president to be elected directly by the people, he correctly chose to speak directly to the people -- who gave him a strong mandate to lead Indonesia for five years until 2009 -- rather than through other channels, such as a speech in the House of Representatives Special Session.

Differing from his previous speeches -- in which he frequently used English terms -- in Wednesday's speech he used English words scantily, such as in mentioning the importance of practicing ""good governance"". The President also showed strong empathy with people living under the poverty line, people who remain unable to overcome their economic difficulties.

Focusing on poverty this year is the right course. There is a touch of populism in the speech, but it's all right. The poor need to be assisted, and the government is attempting to do just that.

The President's message, ""I do know how difficult your life is,"" shows he is concerned about the living conditions of millions of Indonesians throughout the country. He explained his poverty-alleviation agenda, which focuses on the provision of social-safety net programs.

Among others he mentioned, the program will cover 2,891 districts this year. Each district will receive Rp 1.5 billion (US$164,835). The President also plans to give out parcels of land to poor families and allow more funds for education, health, clean water and sanitation facilities.

The government's plan will likely repeat similar programs such as the labor-intensive projects conducted during the peak of the Asian economic crisis in 1998 and 1999. The government launched the program with the assistance of the World Bank. The bank stopped its funding in 2000, following rampant corruption during the project's implementation.

Providing strict ""good governance"" practices were implemented, the program could prove very helpful in empowering local economies. The government would also reach its target in developing infrastructure such as roads, irrigation and flood prevention programs.

The President's address, however, indicated that the government is targeting the poorest of the poor, which account for around 18 percent of the nation's 220 million people. The World Bank said such people, who earn less than US$2 per day, were not receiving adequate attention.

The poor should be enfranchised. They don't need only fish, but the fishing rods as well. They don't need subsidies from the government, they need jobs.

The President could also not resist the temptation to show off his government's achievements dating back to October 2004. The speech is very detailed in mentioning the huge amount of money allocated to alleviating poverty and of how the fund grows every year.

There has been significant progress in the last two years in the war against corruption - this is positive. However, this progress has not convinced the international market, because foreign investment in Indonesia continues to decline. Without steady growth in investment, there is no hope of the country's economy improving. A 7 percent growth in the economy is required to create essential employment opportunities.

The President has made an honest assessment about the country's condition. But honesty alone is not enough. The President failed to show a road map to the eradication of poverty. Many expected he would announce a Cabinet shake-up to boost his government's credibility and to accelerate economic growth.

Eradicating poverty is an urgent, but also mammoth task for the government. We do hope that in next year's State of the Nation speech that the President can show he achieved what he promised Indonesia on Wednesday.

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