APSN Banner

Economists concerned over 'window dressing'

Source
Tempo Interactive - October 23, 2007

Agus Supriyanto, Jakarta – The economists are concerned that the Susilo Bambang Yudhoyono and Jusuf Kalla's government will conduct "window dressing" to enhance the economic report within the remaining two years of their administration.

An economist from Gadjah Mada University (UGM), Sri Adiningsih, said the economic performance in three years of the Yudhoyono-Kalla administration is still far from expectations. "Even from their promises during the past campaign," she told Tempo, Sunday (21/10).

Politically, said Sri Adiningsih, window dressing may imply the government managed to reach its targets. This kind of thing, she said, is often carried out by a company's board of directors at the end of its work period so that the financial report appears good from the outside.

Sri Adiningsih cited the window dressing techniques include expanding the expenditure budget for social aid programs. By allocating Rp70 trillion for social aid, for example, the government can distribute Rp2 million per person per year and ask the receiver to achieving a certain economic activity.

"Those who receive the government's cash assistance and work an hour a week, according to statistics, can be considered as moving out of poverty. With Rp70 trillion, by statistics the government will elevate 35 million out of poverty. But that's only window dressing," said Sri Adiningsih. "The fact is they're still poor."

A member of the House's Finance and Banking Commission, Drajad H. Wibowo, also agreed with this. The former Institute for Development of Economics and Finance economist also stated he saw many methods can be used by the ruling regime to conduct window dressing.

He cited the method included the government's effort to have more social aid programs sourced from the State Budget, such as the Direct Cash Assistance (BLT) or providing credit without collateral.

Budget Committee Chairman, Emir Moeis viewed the government has forced itself to build a self-image by enhancing its performance. He also agreed that window dressing is really happening. "Just look at the allocated social expenditure of Rp67 trillion," he said.

Country