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Job creation at core of Prabowo-Hatta programs
Generating employment, expanding agricultural output and developing rural areas are the key issues raised in the election platform of presidential candidate Prabowo Subianto and his running mate Hatta Rajasa
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enerating employment, expanding agricultural output and developing rural areas are the key issues raised in the election platform of presidential candidate Prabowo Subianto and his running mate Hatta Rajasa.
The pair's programs were compiled in a 13-page document titled The Concrete Agenda and Program to Save Indonesia, which was submitted to the General Elections Commission (KPU) on Tuesday as a registration requirement for presidential candidates.
In the document, they promised to create 2 million jobs annually and to raise income per capita to a minimum of Rp 60 million (US$5,210) from the current Rp 35 million.
Such an ambitious program will be attained through improvements in the irrigation network for the agricultural sector, and infrastructure for labor-intensive industries, such as textiles, footwear and electronics.
The pair promised to develop the processing industry to add value to the economy and reform natural-resource management to provide added value from the coal, mineral, oil, gas, forestry and fishery sectors.
Unemployment in Indonesia remains high, according to analysts, despite the positive data provided by the Central Statistics Agency (BPS).
The agency reported on May 5 a significant decline in the unemployment rate after it changed its methodology, but economists questioned the data's credibility as it did not match other economic indicators, such as labor absorption and the recent upward trend in poverty levels.
According to the BPS, the number of unemployed fell to 7.2 million, or 5.7 percent of the total workforce, as of February ' a rate similar to those recorded in developed countries.
A glimpse into the real employment situation can actually be ascertained from the job-absorption rate in the formal sector; comprising companies and recognized institutions.
According to the BPS, the formal sector only accounted for around 40.2 percent of the 125 million workforce in February, meaning the remaining 59.8 percent made ends meet by working in the informal sector.
In order for those workers to be absorbed by the formal sector, Prabowo and Hatta have promised to accelerate the development of downstream industries, particularly in nickel, copper and bauxite production.
They also promise to enhance the competitiveness of downstream industries in the production of palm oil, rubber, cocoa, pulp and paper as well as other raw commodities.
In terms of industrial focus, the pair has emphasized the need to develop national production of trains, cars, motorcycles, ships, aircraft, heavy machinery and agricultural equipment.
In the management of energy and mining, the pair promises to continue the contract-renegotiation process with mining and oil and gas companies to ensure fairness for the people.
They will also prioritize national business entities in managing expired concessions, and revise the Oil and Gas Law.
'Self-reliance is the key. We should not rely too much on foreign companies,' said Hatta, who resigned last week from his job as coordinating economic minister.
Hatta said that Indonesia should be strong, economically, in order to prevent other countries from dictating their interests in the management of the country's natural resources.
Prabowo and his Gerindra Party have intensively campaigned on the need for the government to have stronger authority and commitment to take over natural-resource management from foreign interests, and transfer it to national entities.
'The first point we [Gerindra] and Pak Hatta agreed on in the vision and missions is the implementation of Article 33 of the 1945 Constitution. Nothing else,' said Gerindra executive Fadli Zon.
That article stipulates a nationalistic approach in which the state is required to take full control of managing and distributing the country's natural resources.
According to Fadli, the working programs were arranged jointly by a team consisting of officials from the coalition parties.
Aside from this issue, Prabowo and Hatta also emphasized the need to prioritize budget allocations for the development of agriculture, forestry and fisheries.
The pair promised to establish a bank for farmers and fishermen, and provide 2 million hectares of new agricultural land for the cultivation of rice, corn, soy, sugar and sago.
They will also allocate Rp 10 trillion from the state budget for the next five years for agriculture research, and to construct new fertilizer factories with a total capacity of 4 million tons per year.
To develop rural areas, Prabowo and Hatta promised to allocate Rp 1 billion annually for every village for the construction of bridges, irrigation, barns, cooperatives, markets, health clinics, institutional empowerment and youth programs.
They will also require all fresh university graduates and doctors to serve in remote and poor regions.
'We will not allow anyone to be left out behind, or be discriminated against, in development. Everyone and every region should have equal access to welfare and resources,' said Hatta.
Excerpts from Prabowo-Hatta programs
(submitted to the General Elections Commission [KPU] on Tuesday)
I. Develop strong, self-sufficient, fair and prosperous economy.
1. Increase per capita income to a minimum of Rp 60 million (US$5,210) from the current Rp 35 million with economic growth target of 7 percent to 10 percent annually.
2. Improve economic equality by reducing the Gini Index (a measure representing the income distribution of a nation's residents) to 0.31 percent from 0.41 percent.
3. Provide 2 million jobs annually by improving irrigation network and infrastructure for labor-intensive industry, such as textiles, footwear and electronics. Provide new agricultural areas and assign state companies to spearhead economic revival.
4. Develop processing industry to add value to national economy.
- Reform natural-resource management to provide added value from coal, mineral, oil, gas, forestry and fishery sectors
- Accelerate the development of the downstream sector, particularly those of nickel, copper and bauxite. State companies will spearhead these efforts
- Continue the contract-renegotiation process with mining and oil and gas companies to ensure fairness for the people. Prioritize national business entities to manage expired concessions
- Enhance the competitiveness of downstream sector for palm oil, rubber, cocoa, pulp and paper as well as other raw commodities
5. Develop national industry; trains, cars, motorcycles, ship building, aircraft, heavy machinery and agricultural equipment.
6. Build special economic zones with integrated tourism, property, education, creative industry and retail facilities. Government will allocate between $2.25 and $3 billion over the next seven years for these programs.
7. Produce a 'pro-people' state budget. On the income side, tax ratio will be increased to 16 percent of gross domestic product (GDP) from the current 12 percent.
- Reduce inefficiency in spending
- Reform the tax system, provide more incentives and expand taxpayer base
8. Budget spending will be used not only to drive economic growth but also promote equal wealth distribution.
- Reform budget spending to improve efficiency and equality as well as minimizing budget 'leakage'
- Gradually increase budget spending as a proportion of GDP to a minimum of 19 percent over the next five years. Spending target will be set at over Rp 3,400 trillion annually
9. Improved budget management.
- Reduce budget deficit to 1 percent of GDP
- Reduce overseas borrowing
- More efficient management of government bond issues
- Issue infrastructure bonds
- Develop social-infrastructure financing for water supply and hospitals
10. Improve business sector competitiveness to cushion the impact of the ASEAN Economic Community (AEC) free trade and from global rivals.
- Cut red tape and licensing process in central and regional governments
- Enhance relations, communication and coordination between labor, employers and government
- Uphold law enforcement against intellectual property infringement and protect national creative industry
11. Develop Indonesia as hub for sharia-based financing and creativity.
II. Promulgate populist economy
1. Prioritize budget allocation for development of agriculture, forestry and fishery, cooperatives and small- and medium-size businesses.
2. Prioritize the channeling of bank loans to farmers, fishermen, workers, traditional traders and micro businesses.
3. Establish a bank for farmers and fishermen.
4. Protect and modernize traditional markets.
5. Protect the rights of migrant workers.
6. Allocate Rp 1 billion annually for every village for the construction of bridges, irrigation, barns, cooperatives, markets, health clinics, institutional empowerment and youth programs.
7. Establish a bank for haj pilgrimage.
III. Rebuild sufficiency in food, energy and natural resources
1. Provide 2 million hectares (ha) of new agricultural land for the cultivation of rice, corn, soy, sugar and sago to absorb more than 12 million workers. Allocate Rp 10 trillion from the state budget for the next five years for research.
2. Raise the competitiveness of the food-processing industry.
3. Promote the production and consumption of high-protein food.
4. Provide 2 million ha of land for the cultivation of sugar palm, cassava, coconut, pecans and other commodities for the production of bioethanol.
5. Construct new fertilizer factories with a total capacity of 4 million tons per year.
6. Ensure fair prices for farmers and consumers.
7. Revise the Oil and Gas Law.
8. Continue the 10,000-megawatt power-plant construction program.
9. Construct new refineries, ethanol plants and gas-distribution network.
10. Expand the conversion of fuel to gas and renewable energies.
11. Reduce fuel subsidies for the rich by introducing new tax and excise scheme.
IV. Improve quality of human resources through education reform
1. Strengthen the nation's character based on Pancasila.
2. Provide 12 years of compulsory free education, remove taxes on books and end the introduction of new textbooks every school year.
3. Revise the national curriculum to emphasize character building and technology. Require compulsory teaching of English, math and anti-corruption in elementary school.
4. Improve school facilities by allocating
Rp 150 million annually for every school.
5. Provide computers for every school.
6. Provide incentives for companies willing to take on interns.
7. Develop vocational schools for agricultural, fishery, forestry and industrial sectors.
V. Improve the quality of social development through health, religion, social, cultural and sports programs
1. Guarantee free health care for the poor through the Social Security Management Agency (BPJS).
2. Battle human and drugs trafficking, and protect women and children. Expand the authority of the current Women's Empowerment Ministry to include the protection of children.
3. Develop modern hospitals in all cities and regencies.
4. Provide social protection for the poor and the disabled.
5. Introduce the 'white revolution' in which the government is required to provide milk for poor children in school.
6. Require all fresh university graduates and doctors to serve in remote and poor regions.
VI. Accelerate infrastructure development
1. Speed up the implementation of the Master Plan for the Acceleration and Expansion of Indonesian Economic Development (MP3EI) in six economic corridors. Rp 1,400 trillion will be allocated from the state budget for the next five years.
2. Construct 3,000 kilometers (km) of new roads and 4,000 km of railway.
3. Initiate the relocation of the country's capital.
4. Construct toll road along the shores of northern Java.
5. Accelerate the provision of housing for 15 million people through the construction of 2,000 towers of low-cost apartments.
VII. Protect the environment
1. Replant 77 million hectares of damaged forest.
2. Provide incentives for farmers to plant trees, to a maximum of 5 ha, for industrial use.
3. Require the use of sustainability certification for forestry companies in order to comply with international rules.
4. Actively address the impact of global climate change.
5. Ensure coal, nickel, copper, bauxite and iron-ore miners comply with environmental rules.
VIII. Develop a corruption-free government that protects and serves the people
1. Protect the people against discrimination, disturbance and threats.
Promote the protection of human rights.
2. Accelerate efforts to increase the welfare of state employees.
3. Ensure legal certainty and non-discriminatory law enforcement.
4. Prevent and combat corruption through the promotion of open and accountable management, strengthen the Corruption Eradication Commission (KPK).
5. Reduce and eliminate red tape that can potentially become the source of corrupt practices.
6. Strengthen the institution and the personnel of the military and the police.
7. Assign 30 women to ministerial positions or other government posts of equivalent level.
8. Implement a free, active and strong foreign policy.
Hasyim Widhiarto also contributed to the story.
