• Short Summary

    As Indonesia's ten-year development plan draws to a close, there are signs of a healthy improvement in the country's economy.

  • Description

    GV PAN Oil spouting out of pipes into reservoir. (3 SHOTS)

    SV & ZOOM IN Oil pump in action. (4 SHOTS)

    GV Traffic in streets of down-town Jakarta. (8 SHOTS)

    GV Truck dumping ore at site of mining excavations. (4 SHOTS)

    SV Indonesian children and youths in poor area. (3 SHOTS)

    SV Child having water poured over him by other and mother fetching water from well and woman hanging out washing. (5 SHOTS)

    GV Houses in village.

    GV ZOOM OUT Oil storage depot and ships in dock alongside oil depot. (3 SHOTS)

    GV & SV Workers transferring oil from depot to oil tanker. (3 SHOTS)

    LV Oil depot.

    TRANSCRIPT: JOYCE: "Each day more than one and a half million barrels of oil come out of the Indonesian ground. The oil keeps the country going -- it brings in more than half the revenue and its contribution to the nation's economy is on the increase. When Indonesia began its development plans ten years ago, the economy was in a mess. The country was still smarting from Sukarno's economic recklessness, and it was still in the bloody aftermath of the attempted coup of 1965.

    "Today, the superficial signs of ten years' of Suharto - type development, are the concrete office towers of Jakarta, the widened streets, the new shopping centres. It's a cosmetic measurement, for while there's no disputing that development has brought gains for everyone, it is arguable that the gains have been distributed evenly. The World Bank has just completed a major study to find out just how much people have gained from development. The stark conclusion was that the gap between rich and ...poor has not shrunk. It's widened in the last ten years.

    "Projects this size are going on all over Indonesia. In fact, a project gets little attention if it costs less than five hundred million dollars.

    "For most Indonesians, the development projects might just as well be on the moon. The vast majority of the one hundred and forty million people are unaffected. Their life is still an overcrowded village in rural Java. They're mostly farmers -- poor farmers -- who lease the land they till from an absent landlord. Their income to support a family of at least six and probably many more, is not likely to be much above two hundred dollars a year -- even in a good year. Even what land the farmers own themselves has been sub-divided so often it measures little more than a third of a hectare. One of the government's answers to the shrinking land problem is trans-migration. The policy of moving landless peasants out of Java, to the outlying Islands of the archipelago.

    "Added to all its other problems, Indonesia continues to suffer from endemic corruption, even though there has been a mildly successful campaign in the last two years to root it out. But according to the World Bank, administrative inefficiencies and obstacles could be the single most important constraint on the acceleration of development. The civil service is still weak and there is an acute shortage of skilled managers and technicians in every government department and agencies. Oil and foreign aid keeps the nation's head above water. Indonesia is burning off its number one asset -- oil. But for how much longer?"

    After a brief period of administration by the United Nations, Dr. Sukarno established himself as virtual dictator in 1963. Inflation, widespread corruption and Sukarno's Marxist tendencies led to opposition from students, the army and Moslem groups. Military commanders, led by General Suharto assumed emergency executive powers in March, 1966.

    Initials JS


    Script is copyright Reuters Limited. All rights reserved

    Background: As Indonesia's ten-year development plan draws to a close, there are signs of a healthy improvement in the country's economy. This is mainly the result of a vastly improved exploitation of oil reserves. But the gap between the Indonesian rich and poor continues to widen. In Jakarta, men still work for less than a U.S. dollar a day, collecting cigarette butts thrown from the windows of passing cars. This report from Tony Joyce of the Australian Broadcasting Commission (ABC).

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