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Neo-liberalism accusations fly in DPR

Source
Jakarta Globe - May 29, 2009

Febriamy Hutapea – The campaign team of former President Megawati Sukarnoputri on Friday used a discussion in the House of Representatives to accuse the government of taking a neo-liberalist approach to its economic policies.

Hasto Kriatianto, a member of the campaign team backing Megawati and her running mate Prabowo Subianto, said that over the past five years, President Susilo Bambang Yudhoyono's government had proposed several neo-liberalist ideas when forming policies.

Hasto, also a member of Megawati's Indonesian Democratic Party of Struggle (PDI-P), said his party had evidence to prove that neo-liberalism was at work in the formation of the country's economic policies.

"We have repeatedly seen that existing policies are aimed at liberalizing our international trade policies," Hasto said. "The government has even proven receptive toward overseas products in the agricultural field."

He said the PDI-P had repeatedly opposed the policies and had managed to scuttle several laws and regulations that smacked of neo-liberalism.

Hasto cited the investment bill, which proposed a free trade zone in Bintan, Batam and Karimun islands, and the bill on the 2009 state budget.

"The absence of restrictions on rice imports was actually a criticism of our food policies but the debate that followed went into the technical aspects... and failed to consider the issue of why we are importing rice," he said.

The government, Hasto said, has also failed to intervene during rice harvest period, leading to a drastic fall in the price of unhusked rice.

"We have proven that neo-liberalism is at work and has influenced the mind-set of our people with regard to the economy."

Zulkiflimansyah, a member of the campaign team for Yudhoyono and his running mate, former Bank Indonesia Governor Boediono, said that neo-liberalism had some positive aspects.

"Not everything related to a market-oriented economy is wrong. Some concepts can be applied but of course there is also a need to protect our markets," said Zulkiflimansyah, who hails from the Prosperous Justice Party (PKS). "Don't just say that neo-liberalism is bad if you can't provide a solution," he said.

Zulkiflimansyah said that even if the initial concept for a policy was neo-liberalist in nature, "If we look at the end product, a lot has been changed and those policies are running against the concept of neo-liberalism."

He, too, cited the case of the investment bill. "In that law, we have an article that stipulates that we provide incentives for investors who use local products," he said.

"Whoever the candidates are, they would have difficulties separating themselves from the market. The important thing is how we interact with this policy," Zulkiflimansyah said.

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