Indonesia`s development is largely dependent on foreign capital and not based on economic resources."Jakarta (ANTARA News) - Indonesia should work towards achieving economic independence, given that the country has a trade-dependent economy, Gajah Mada University economist Dawam Rahardjo stated here on Wednesday.
"Political sovereignty will be difficult to carry out as the Indonesian economy depends on the global economy," noted Dawam.
Dawam pointed out that Indonesias development strategy is heading towards economic growth that needs both capital and technology.
But, Indonesia lacks the requisite capital and technology, hence the government is inviting foreign capital, Dawam added.
"Indonesias development is largely dependent on foreign capital and not based on economic resources," he emphasized.
Dawam asserted that one of the consequences of the development in Indonesia is that the investors were partial towards development projects that benefitted them.
The projects promoted by investors have led to the exploitation of the natural resources of Indonesia such as oil, gas, coal, and palm oil plantations.
"The investors are also promoting industrialization, but with the pre-requisite condition that Indonesia must import raw materials from them," he added.
He believes that Indonesia requires advanced technology for development. However, he feels it is a kind of trap wherein Indonesia will have to use raw materials and technologies from abroad.
"We have to buy and import (raw materials and technology) and Indonesia does not have the funds. The last solution left is to borrow the required funds, though the related debt will continue to increase," Dawam explained.
Indonesias staggering debt condition will lead the country into a debt trap, which is caused by the import of raw materials and technology for increasing trade.
Dawam emphasized that Indonesia must have a leader with a personality based on Pancasila and the Constitution of 1945.
(U.A050/INE/KR-BSR/A014)
Editor: Priyambodo RH
Copyright © ANTARA 2014
