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Neoliberal proponents to foil Jokowi's people's economy agenda: Expert
The University of Gadjah Madaâs Center for Peopleâs Economy Studies (Pustek) has said the ongoing conflict between the Corruption Eradication Commission (KPK) and the National Police is merely a means to distract President Joko âJokowiâ Widodo and Vice President Jusuf Kalla from their "peopleâs economy" agenda
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he University of Gadjah Mada's Center for People's Economy Studies (Pustek) has said the ongoing conflict between the Corruption Eradication Commission (KPK) and the National Police is merely a means to distract President Joko 'Jokowi' Widodo and Vice President Jusuf Kalla from their "people's economy" agenda.
The center says the influence of neoliberal proponents must be anticipated, as it contradicts the mandates of the Constitution.
'The current KPK-National Police conflict is not a serious threat. A problem we must anticipate is the continuation of a neoliberal economic agenda by the government,' said Pustek director Awan Santosa on Sunday.
Among the neoliberal pressures include the liberalization of energy -- particularly oil and gas -- which was started with the recent decision to let fuel prices be determined by market mechanisms, Awan said.
'In the near future, there will be an agenda to fully control the oil and gas sector in Indonesia,' said Awan.
Another sign of the growing neoliberal economy influence is mounting pressure on the Jokowi-Kalla administration to expand the corporation sector through various infrastructure development-investment schemes.
'A Rp 225.9 trillion (US$17.64 billion) deficit has even been built in to the revised state budget 2015 draft bill, paving the way for foreign loans to enter the country,' said Awan.
The analyst added that the government's support of trade and investment liberalization was the third indication of growing neoliberal economic influence in Indonesia.
'We can see these from, among others things, the extending of raw ore export permits to mining firm PT Freeport following its commitment to develop a smelter facility in Gresik, East Java,' said Awan, adding that without preventative efforts, neoliberal proponents could divert the Jokowi-Kalla administration from its commitment to a people's economy.
"The key is that the Jokowi-Kalla administration must be consistent with the mandates of the Pancasila ideology, adhere to the Constitution and unite with the people's movement in order to realize Trisakti principles that envision an Indonesia that is sovereign in its politics, independent in its economy and distinct in its cultural character,' said Awan. (ebf)(++++)
