Conflict in Cabinet<\/p>\n
The decision of the Financial Sector Policy Committee (KKSK)
\nto accept the proposal of the Indonesian Bank Restructuring
\nAgency (IBRA) for the extension of the obligers' debt settlement
\nfrom four years to ten years has brought on an open conflict
\nbetween cabinet members.<\/p>\n
At a cabinet meeting on Monday, Head of the National
\nDevelopment Planning Agency, Kwik Kian Gie, was involved in a
\ntough debate with State Minister of state-owned Enterprises
\nLaksamana Sukardi on the need to extend the settlement of bank
\nshareholders' debts.<\/p>\n
Kwik argued that the extension of debt repayment would only
\nspoil conglomerates with no intention of meeting their financial
\nobligations. But Laksamana said the policy would benefit the
\ngovernment.<\/p>\n
IBRA Chairman I Putu Gde Ari Suta and Coordinating Minister of
\nthe Economy Dorodjatun Kuntjoro-Jakti backed Laksamana while
\nFinance Minister Boediono backed Kwik, though not openly.<\/p>\n
The conflict became obvious when the two sides spoke to the
\nmedia by referring reporters to the International Monetary Fund
\n(IMF). Kwik, once opposed to the IMF, said that the IMF supported
\nthe cancellation of the decision to extend obligers' debt
\nsettlement.<\/p>\n
Minister Dorodjatun denied Kwik's statement and said that the
\nIMF did not give such a recommendation.<\/p>\n
The conglomerates' interest is the source of the conflict.<\/p>\n
Some deeply indebted tycoons are still living royally while
\nthey have, in all, repaid Rp 18 trillion, or only 12.85 percent
\nof their total debts of US$140 trillion.<\/p>\n
We hope that the conflict will end soon, so the Cabinet will
\nbe able to focus on the economic recovery program. It is
\nnecessary to pay greater attention to poverty alleviation, while
\npeople still line up for rice and oil.<\/p>\n
-- Republika, Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/conflict-in-cabinet-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }