General election seen as no threat to business climate<\/p>\n
JAKARTA (JP): Indonesia's business climate is not likely to
\nchange much after next year's general election as the results
\nhave been predicted, business executives and analysts said
\nyesterday.<\/p>\n
Businessman Fahmi Idris from the Kodel Group said that
\nwhatever the outcome of the election, businesses will be able to
\nadapt to government policies.<\/p>\n
\"Some businesses actually have an influence on the
\ngovernment's policy-making process,\" he said at a seminar
\ndiscussing business prospects after the 1997 general election.<\/p>\n
The seminar, held to commemorate the second anniversary of the
\nGatra newsweekly magazine, featured other speakers, including
\neconomists Sjahrir from the Institute for Economic and Financial
\nResearch, Didik J. Rachbini from the Institute for Development of
\nEconomics and Finance, and marketing consultant Hermawan
\nKartajaya.<\/p>\n
Fahmi said that the election might cause a slight shock to, or
\nworries within, businesses, but that their ability to adjust
\nwould protect them from harm.<\/p>\n
However, he said, businesses may have a \"change in attitude\"
\nafter the year 2000 because the next elections, to be held in
\n2002, \"will almost surely not see the re-election of President
\nSoeharto\".<\/p>\n
\"I am sure that businessmen will only start making their moves
\naround the year 2000. At that time, they will start to lobby the
\nnext presidential candidate and people who might hold top
\ngovernment posts,\" he said.<\/p>\n
He said that he was convinced that the House of
\nRepresentatives would do a \"better job\" at that time. The House,
\nhe said, would refrain from simply rubber stamping any policy
\nproposed by the government, as it does now.<\/p>\n
\"But as long as the country is led by Pak Harto, there will be
\nno significant change,\" Fahmi added.<\/p>\n
Similarly, economist Sjahrir said not only would Indonesia's
\nbusiness climate not change, its problems would also remain the
\nsame.<\/p>\n
\"Even if economic growth can be maintained at a high level,
\nthe distribution or focus of this growth will not be different
\nfrom the past.<\/p>\n
\"The unequal accumulation of productive assets will continue
\nand any efforts to enhance equity will be more of a symbolic
\ngesture than a serious, well planned program,\" he said.<\/p>\n
Sjahrir said partnership programs between conglomerates and
\nsmall and medium enterprises would continue to fail if basic
\npolicies were not changed to support the government's efforts to
\nnarrow existing economic gaps.<\/p>\n
He said the nine-month transition period during the election
\nof House members in May, 1997, and the swearing-in of the new
\npresident in March, 1998, would be an unsettling period for the
\nbusiness sector.<\/p>\n
\"The nine-month period will be very long and during this time
\nwe will have a lame-duck government. This period will be full of
\npolitical lobbying and uncertainties; economic concerns will be
\nat the bottom of the government's priority list,\" he said.<\/p>\n
Hermawan Kartajaya said that for the first six months of next
\nyear, most businesses have predicted a slowdown in operations and
\nan increase in business risk.<\/p>\n
\"This slowdown will result in a six-month lag which is really
\nnot good for businesses because they must face free trade in a
\nfew years' time,\" he said. (pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/general-election-seen-as-no-threat-to-business-climate-1447893297",
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