Gov’t Prepare Economic Policies to Address Inequality

Coordinating Minister for the Economy Darmin Nasution and Cabinet Secretary Pramono Anung deliver a press statement after a Limited Meeting on Tuesday (31/1), at the Bogor Presidential Palace, West Java

The Government is preparing economic policies which prioritizes equality. During the implementation, the Government will choose one policy first, and it will be followed by the implementation of other policies. “There are several basis of these policies which are possibly related to one another,” Coordinating Minister for the Economy Darmin Nasution told the reporters after a Limited Meeting on Integrated Planning and Budgeting to Optimize Development and Just Economic Policy, on Tuesday (31/1), at Bogor Presidential Palace, West Java.

According to Darmin, the basis of the policies are related to agrarian reform policy, as well as food sector (agriculture) and plantations policies. The policies emphasize that low-income communities basically do not only need the same opportunities, but they also need equity. “Therefore, agrarian reform policy consists of equity allocation; on how to give equity for those in need, particularly for farmers who do not have land or farmers who have small land,” Darmin explained.

The Coordinating Minister added that the Government will not give land for an individual but for a group. “Planting chillies in 50 hectares of land will bring better results than planting them in 0.5 hectares of land in 200 different areas”, Darmin said.

In the field of plantation, the Government will promote other commodities which are  dominated by community plantation such as rubber, coconut, chocolate, coffee, and others to shine, rather than palm oil.

According to Darmin, the Government’s review shows that the seeds for community plantation have never been well-planned before. Darmin admitted that good quality seeds for farmers have never been produced.

In the agrarian reform policy, the Government will build houses for poor urban community living in slums. The Government will also encourage synergy between seaweed farmers and large companies to invest in seaweed processing. “If we are consistent in implementing the policies, the Government will not give concessions to large companies in the cultivation of seaweeds. Let seaweed farmers do it,” Darmin explained.

Furthermore, the Government will draw up the State Budget (APBN) expenditure policies to fund labor intensive projects and also economic projects such as constructing infrastructures (roads, bridges) and power plants.

“The Government will find a way to rejuvenate people’s economic activities,” Darmin said.

On education and vocational training, the Government will conduct massive reforms so that vocational schools (SMKs) do not only issue a diploma but also a certificate of competence. ”That makes dropouts can find a job because they have a certificate of competence,” Darmin asserted.

In order to immediately carry out the implementation and coordination, the Government will consider whether a separate institution needs to be formed to manage it or it can be managed by the current Coordinating Ministries. “The on-going policies, infrastructure projects, de-regulation, and others will still be carried on, but we notice that there are certain policies that need to be implemented to improve equality,” Darmin added.

Darmin explained that inequality also occurs in various countries around the world, either caused by sudden drop in the price of natural resources or rapid development of technology. “We have to be prepared, so we can fix our flaws in the near future. Not only to increase people’s prosperity which is indicated by the increase in income but also to bring equality,” Darmin concluded.(RMI/DND/DNS/ES) (RAS/MMB/YM/Naster)