Analysts skeptical of new economic ministers<\/p>\n
JAKARTA (JP): Analysts doubted the Cabinet reshuffle by
\nPresident Abdurrahman Wahid on Monday would improve the ability
\nof the government's economic team to lead the country out of its
\ncrisis.<\/p>\n
They also warned the move might create negative market
\nsentiment.<\/p>\n
University of Gadjah Mada economist A. Tony Prasetiantono said
\nthe merits of the replacement of State Minister of Investment and
\nState Enterprises Development Laksamana Sukardi with Rozy Munir
\nwere highly \"questionable\".<\/p>\n
Tony said Laksamana brought with him a proven track record as
\na banker, and held a strong vision of how to develop state
\nenterprises and attract investment back to the country.<\/p>\n
Rozy is known as an executive of the National Awakening Party,
\nwhich was founded by the President.<\/p>\n
He noted Laksamana was often in conflict with Rozy, the
\nsecretary-general at his office, regarding the management of
\nstate companies.<\/p>\n
\"I was really surprised by Gus Dur's choice of Rozy. Maybe the
\nPresident received ill advice or heard inaccuracies about
\nLaksamana's conduct,\" Tony told The Jakarta Post.<\/p>\n
Laksamana is also chairman of the Jakarta Initiative Task
\nForce, an agency created by the government to help facilitate the
\nrestructuring of the country's massive corporate debt overhang.<\/p>\n
It was unclear if Laksamana would also leave the latter
\nposition.<\/p>\n
Tony added that Minister of Trade and Industry Jusuf Kalla's
\nreplacement by Army Lt. Gen. Luhut Panjaitan, currently the
\nambassador to Singapore, was not a good choice either.<\/p>\n
He acknowledged doubting Kalla's ability to lead the ministry
\nfrom his appointment in October because he had no experience in
\ndealing with the World Trade Organization (WTO).<\/p>\n
\"The most difficult task of this ministry is to lobby the
\nWTO,\" he said.<\/p>\n
Tony said Kalla also lacked the vision to develop domestic
\ntrade and industry despite his business background.<\/p>\n
\"But Panjaitan is not the best choice as he is also lacking in
\nthis field. He may be successful in lobbying in Singapore, but it
\nneeds more than this to lobby and deal with the WTO,\" he said.<\/p>\n
Tony said the financial market would be \"skeptical\" about the
\nchoice of the two new ministers.<\/p>\n
He added it would further damage confidence in the economy,
\nwhich was badly hit by last week's downgrading of the country's
\nlong-term foreign currency issuer credit rating to selective
\ndefault by Standard & Poor's.<\/p>\n
Head of research at BNI Securities Adrian Rusmana concurred
\nthe third Cabinet reshuffle by Abdurrahman would send a signal of
\ninstability to the market.<\/p>\n
\"This could create negative market sentiment.\"<\/p>\n
However, he added the reshuffle could also be construed as a
\nstrong indicator the President was now in full control of his
\nCabinet because most of the important portfolios were held by his
\nclose allies.<\/p>\n
\"Let's wait and see,\" he said.<\/p>\n
The reshuffle was long rumored in the capital, particularly
\ndue to the President's disappointment about in-fighting among the
\neconomics ministers which resulted in the delayed implementation
\nof many reform measures.<\/p>\n
There have also been rumors that Coordinating Minister for the
\nEconomy, Finance and Industry Kwik Kian Gie will be replaced.<\/p>\n
Head of Research at PT SG Securities Lin Che Wei believed the
\nreshuffle was an effort by Abdurrahman to enhance the performance
\nof his economic team.<\/p>\n
\"They cannot adopt and pursue a good strategy if they do not
\nprofess mutual trust and mutual understanding,\" he said,<\/p>\n
Lin warned that Abdurrahman's appointment of people from his
\nown political party or organization would inevitably cause
\nsuspicion the President was attempting to centralize power.<\/p>\n
\"This might cause the market to be nervous.\"<\/p>\n
He said the President should have picked technocrats instead
\nof members of political parties for his economic team. (rei\/udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/analysts-skeptical-of-new-economic-ministers-1447893297",
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