What we speak about poverty sounds like a spotlight discussed a lot of people in Indonesia. The Rubrics of humanities published in mass media were filled by the phenomenon of poverties in different parts of the Indonesia country with a variety of symptoms—malnutrition and the spread of disease.
The Central Bureau of Statistics (BPS) publish that the poverties reach 14.5% in 2009, 13.33% in 2010, 12.49% in 2011, and 11.96% in 2012. The data conclude that poverties have declined, nevertheless the poverties cannot be inferred from the quantitative data. The real facts on civic life remain social inequality .
The poverty should be seen as a relative concept, because the poverties relate to the structure of society. The poverties are not defined in terms of quantitative economy, furthermore it is qualitative and humanistic. In other words, the poverties cannot be determined as a single issue (poverty), but it is the plural meanings (poverties).
There are three concepts of poverties used as a reference—absolute poverties, relative poverties and subjective poverties (Suntoyo Usman, 2003). The absolute poverties are defined by making a certain size which is concrete—the basic living needs of society (clothing, food, shelter). The relative poverties show the dimensions of space and time. They are typically measured by the consideration of particular society who are oriented by the degree of life viability.
The basic assumptions of poverties are different in the other regions, and times. The opinion of poverties are formulated by themselves in their context. This concept is not familiar with objective poverty and relative poverty. The societies according to the characteristics of poverties do not possibly consider themselves who are poor and vice versa.
The Misguided Development
The eradication of poverties in a nation cannot be separated from development. In 1969, the government of Indonesia initiated a crash-programs which follow the pattern of capitalist by borrowing funds from abroad—the Inter Governmental Group On Indonesia (IGGI). A financial capital is considered as a single crucial variable of construction. There are the others of crucial variable—human capital that seemed neglected—that must be considered by the government.
In 1967, the government issued Foreign Investment Law, so that she invited the foreign investors to invest in Indonesia. Its policy can be said that production rises as a result of the investment, but the income levels of farmers, industrial workers, and low-wage service employees in urban areas—the rural areas—remain low. The results of the misguided strategy of development born some problems— 1) increasing the external debts which causes Indonesia at the third level debtors of the world after Mexico and Brazil. 2) the raise of inflation which devalues the rupiah against foreign currencies. 3) depletion of natural resources—forest and oil that cause endangerment preservation and environmental damage.
The environmentalists say that destruction of natural resources is calculated by the cost—the growth of the real economy becomes much smaller than the gain of investment. It may even be a negative economic growth. Draining oil may exacerbate natural damage, so that Indonesia eventually ceases to be oil exporters, and causes the energy crisis.
The foreign debts and the decline of oil revenues induce a budget crisis—the pressure of difficult conditions. On the advice of the International Monetary Fund (IMF), the government should reduce or eliminate subsidies to address the budget. The subsidies of Small and Medium Enterprises and Cooperative (SMEC) are revoked. The fuel subsidies (BBM) which are drastically reduce born the higher fuel prices. Increasing fuel prices triggers an increase prices of goods— it means increasing of inflation, so that people's purchasing power dramatically declines and causes the poverties.
Reengineering Human Capital
Single crucial variable that can be expected is human capital—agents of development and poverty-fighting in the era of global competition. Building human capital takes time, hard work, and struggle. Our nation requires human capital that has a strong character, positive mind, ethical work, moral sense, and honesty .
Nowadays, the human capital discourages heart. The riots, violence and crime have become the spotlight in the media. The corruption entrenched as a common issue. The Compassion increasingly eroded by individualism and materialism.
Reengineering human capital or human capital engineering is the constructive design of development—the human capital of the nation. Sharif (1993) says that the engineering are physical facilities (techno ware), skills, expertise, and even human creativity (Human ware) (Kompas, 17 April 2007).
Realizing the human capital is integral. There are four elements that must be considered. Firstly, public education. It requires a considerable substantial investment. The constitution of 1945 determines the education budget—at least 20% of the national and regional budgets. The importance of human resource development and the impact of the investment in human capital have become a major concern by Theodore W. Schultz in his book—The Economics Of Being Poor (1993).
Secondly, attitudes and behaviour in relation to the work ethic. It is associated with what is often referred by "culture of poverty". He concrete examples of the attitudes and behaviours— lazy to work, wasteful consumption, low self-esteem, underestimate, resigning to fate—that born the poverty.
Thirdly, the technical skills which are associated with tools and energy. It is associated with the development of technology systems and equipments to cultivate the land. The use of this equipment systems greatly improve the productivity of human labour and labour-saving nature. Samuelson depicts by the theory of “Increasing Return to Scale” of microeconomic theory—the technology then the output will increase by more than the added input.
Fourthly, entrepreneurship. The entrepreneurial economy is the driving forces that connect the world with innovative techniques to market. The characteristic entrepreneurs are the motive to obtain the risk, but the activities are driven by the profit motive, in this case the nationalist spirit must be maintained. The theory of “Swasono Compasssion Utility” who prefer the interests of the nation to consume, rather than pursuing a more favourable consumer equilibrium foreign parties.
Refereces:
Books
Rahardjo, M. Dawam. 2006. Menuju Indonesia Sejahtera: Upaya Konkret Pengentasan Kemiskinan. Jakarta: khanata, pustaka LP3ES Indonesia.
Poerwopoespito, F.X. Oerip S dan T.A. Tatang Utomo. 2000. Mengatasi Krisis Manusia Di Perusahaan: Solusi Melalui Pengembangan Sikap Mental. Jakarta: Grasindo.
Articles
Muttaqien, Arip. Paradigma Baru Pemberantasan Kemiskinan: Rekonstruksi Arah Pembangunan Emnuju Masyarakat Yang Berkeadilan, Terbebaskan, Dan Demokratis.
Handayani, Ririn. Paradigma Baru Pengentasan Kemiskinan Di Indonesia: Bukan Sekedar Tugas Dan Kebajikan, Tapi Sebuah Investasi.
Mass Media
Kompas, 17 april 2007
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