Page 182 - BUKU STRENGTHENING THE INDONESIAN PARLIAMENTARY DIPLOMACY FADLI ZON

Far in the dark corner of the world, many men and women are still working more than eight
hours a day and yet they still unable to meet their families’ needs for that day. While on the
other side, there are elites enjoying lavish and glamorous life, earning money more than the
others can have in a year. There are these boys and girls who can only dream to have decent
education just because they don’t have the money to go to school, while the children of the few
spent their way in luxurious entertainment without worrying for their future. The world seems
unfair.

Indonesia believes that ensuring equality and social equity is a key part of fighting poverty and
securing a sustainable future for all. Inequality mostly represents as income inequality as well
as inequality in access to basic needs and services. In any form, inequality deprives individuals
from the opportunity to increase their productivity and advance their wellbeing.

If we are debating about inequality, one we have to underline is that we need to be equal in
all access. Indonesia translates this by ensuring access to basic needs and services: education
and health. Our national constitution mandated the allocation of 20% of national budget for
education, to guarantee that all Indonesians can access education with no cost.

The Law on Health requires the state to allocate 5% of national budget for health sector. Further,
to ensure equal access and basic protection to healthcare services, the Indonesian House adopted
Law on Social Security Service Agency to provide universal social security for all Indonesians
with no exception.

This costly policy should be supported by fiscal reform. Indonesia is currently in its efforts to
do so. We are reforming our national taxation system. Progressive tax rate system is one way
but most importantly is that we need to ensure that no one can hide their wealth and assets
anymore. We are in a process to harmonize our Law on Banking with the globally acknowledged
system of Automatic Exchange of Information (AEoI) which will be in force in 2018.

Another issue which we should address are: decent wages and land ownership. Jobs creation
is not the solution to closing the wealth gap. It should be accompanied with a decent wage. We
cannot let men and women working hours without proper job arrangement and even more
decent wages. That is why we need to intervene by not only regulating minimum wages but
also stimulating efforts to promote more skilled and professional labours as well as promoting
entrepreneurship.

Government intervention in land acquisition is also needed. A country where it leaves the
business of land ownership solely to the market will only widen the gap between the poor and
the rich. We cannot let that happen.

Selected Speeches of the Vice Speaker of the House of Representatives of the Republic of Indonesia I 169