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| Economic System: Recommendations |
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Macroeconomics
- Efforts must be made to find ways to represent the interests of ordinary people in economic decision-making at the
local level, and to transmit their views to the central political system.
- The Indonesian government must be supported in its efforts to stabilize the rupiah.
- To combat government underfunding, the Indonesian tax system should continue to push for higher levels of tax registration, especially among wealthy Indonesians.
Foreign Investment
- The Indonesian business sector should continue to seek FDI. Efforts should be made to strengthen the capacity of Indonesian banks to withstand the vagaries
of the international financial system.
- The Indonesian government should attempt to improve its relationship with the IMF, meeting the Fund’s demands wherever possible, while implementing
policies to mitigate any harsh effects on the Indonesian population.
Competition
- Attempts should be made to understand further the economic basis of many of the tensions between native populations and later arrivals.
- Support should be given to local governments to resolve economic disputes through previously determined mediation mechanisms. The processes could be the same throughout Indonesia and developed by the central government.
- Local community groups composed of members of all of the local populations should meet to discuss upcoming problems with respect to natural resources and development initiatives, even before the need for conflict resolution becomes apparent.
Livelihoods
- More weight should be placed on the economic welfare of marginal people in Indonesia, with a particular focus on creating sustainable livelihoods and on renewing resources. There is a need for a national consensus and coordination of these efforts.
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