'Don't be unrealistic about big cats meeting!'<\/p>\n
A huge assembly of Indonesia's largest businessmen took place
\nin Bali last week. What is to be expected from this unprecedented
\ngathering? The Jakarta Post looks at the issue in an interview
\nwith prominent economist Mari Pangestu.<\/p>\n
Question: What is your general view about the Bali
\nDeclaration?<\/p>\n
Answer: First of all, it's something very special for big
\nbusinessmen from many different groups and fields of business to
\nsit down together like that. And they were not merely
\nrepresentatives, but were the owners or top management executives
\nthemselves. There has never been such a gathering before, except
\nin 1980, when a similar meeting was held, although on a smaller
\nscale.<\/p>\n
Secondly, despite high expectations on the part of the people,
\nit's very unrealistic to expect a concrete program of action out
\nof such a gathering. The nature of such a meeting is such that it
\nis difficult for them to adopt such a concrete program.<\/p>\n
So, I think, they tended to be very careful about making
\npromises, because they realized they might not be able to always
\ndeliver on their promises, in some cases because of external
\nfactors beyond their control. Moreover, since there is no
\nenforcement mechanism, we cannot expect anything very significant
\nfrom them -- unless they come under peer pressure.<\/p>\n
Nevertheless, it is good that they realized the vital
\nimportance of maintaining unity and declared their awareness
\nabout the gap between giant and small businesses.<\/p>\n
Q: What was the main theme of the meeting?<\/p>\n
A: There were two themes they wanted to pursue. First, they
\nfelt they had been constantly under fire over things they had not
\nfelt were their responsibilities. They always pay their taxes,
\nthey have their own social and charity programs and so on. Hence,
\nthey wanted to improve their image; for example, by forming a
\nspecial task force or a forum to discuss social inequity.<\/p>\n
The second theme was the need for businessmen to have a common
\nstance. Cynics may think that this is just rhetoric. But, being
\nunited is important, especially in facing foreign competition.
\nAlthough companies basically compete with each other, businessmen
\nrecognize the importance of unity to address domestic issues,
\nsuch as social inequity, inconsistencies in government
\nregulations and criticisms that conglomerates are irresponsible.<\/p>\n
But, realistically, they can only unite when they have common
\ninterests. So, let's not be too unrealistic, expecting some kind
\nof Indonesia Incorporated to conquer the world.<\/p>\n
Q: Are you saying that Indonesian Inc. is something which is
\nimpossible to accomplish?<\/p>\n
A: No. It's not impossible. Only, once again, it's unrealistic
\nto expect too much from them.<\/p>\n
Q: So, what are your suggestions?<\/p>\n
A: There are certain characteristics you have incorporate if
\nyou want to make the forum effective. First, you have to run it
\nas a loose structure. So don't try to institutionalize it,
\nbecause if you do that people will use it as a political tool.
\nThe forum, therefore, has to be informal, using as many networks
\nas possible. The most important thing in running such an
\norganization is the commitment of the business people in charge.
\nThey must be those with access both to the government and to the
\nbusiness community itself.<\/p>\n
Second, the forum has to focus on certain issues. Don't try to
\ncope with too many issues at once. Otherwise, it won't be
\neffective and will be difficult to be evaluated as well.<\/p>\n
Q: What possible issues do you suggest?<\/p>\n
A: The social inequity issue is one example. I don't know
\nwhether this is going to be their priority. But they have agreed
\nto reduce the gap between giant companies and the small ones
\nthrough a partnership program. We may say that they are just
\npoliticking, doing some public relations work. But I sincerely
\nhope they are really serious. There are indeed ways in which they
\ncan achieve something.<\/p>\n
Q: How would you see a partnership program working, without
\nbecoming a charity program?<\/p>\n
A: The first principle is: The program has to be mutually
\nbeneficial. Second, if you want to help a smaller or less capable
\npartner, it is not just the funds that matters. Sometimes, you
\ndon't have to drop big money but simply give them access to funds
\nand let them do the rest. Technical, management and marketing
\nassistance are sometimes more important than funds.<\/p>\n
You have to treat it as a guidance and assistance program. So,
\nthere has to be long-term commitment as well as a long term
\nvision. Third, the program has to be conducted voluntarily. We
\ncannot force anybody to participate in it. If we did it wouldn't
\nwork as expected.<\/p>\n
The last principle is: Such a program has to be carried out
\nprofessionally, by professional people who have a very good
\nunderstanding of small and middle-sized businesses.<\/p>\n
Q: What about monopolies?<\/p>\n
A: That's one of the problems they have to be concerned about.
\nWhy? Because, there has been growing pressure for anti-monopoly
\nlegislation. My impression, though, is that we, and even the
\ngovernment and the business community, don't yet know what
\nprovisions should be contained in such legislation.<\/p>\n
Q: Other suggestions?<\/p>\n
A: Besides the government and business groups, the forum must
\nalso include representatives from outside those two sectors in
\norder for the forum to be independent. This is the kind of group
\nthat will represent the national interest. (swa)<\/p>\n
Mari Pangestu is head of the economics department of the
\nCentre for Strategic and International Studies in Jakarta..<\/p>",
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