New economic team a 'ridiculous idea'<\/p>\n
President Abdurrahman Wahid's plan to set up another team of
\neconomic advisers has received mixed reactions. Hadi Soesastro, a
\nnoted economist from the Centre for Strategic and International
\nStudies, is one of those who disagrees with the plan.<\/p>\n
Question: How do you view the President's plan for the new team?<\/p>\n
Answer: I think Gus Dur (Abdurrahman) is worried about the performance
\nof his economic ministers. But the plan to set up a new team is a
\nridiculous idea. Why should the President take an initiative to
\nset up a team to support his ministers?<\/p>\n
This team will be different from the existing councils, like
\nthe National Economic Council (DEN) and the National Business
\nDevelopment Council (DPUN), which assist the President.<\/p>\n
Should he feel the need to strengthen matters relating to
\npolicy making and implementation, he could put the new team as
\npart of his presidential office, either under the state secretary
\nor the Cabinet secretary. As part of the presidential office, it
\nwould have the authority to summon ministers.<\/p>\n
Q: Is his concern about the poor performance of his economic
\nministers well-founded?<\/p>\n
I think most people agree with this assessment.<\/p>\n
A: But they have not been even five months in office and the
\neconomic mess left out by the past regime was chaotic?<\/p>\n
It is true, but there are things that could have been done in
\nthe period of five months and they were not done. Things like
\nbanking restructuring at IBRA (Indonesian Bank Restructuring
\nAgency) and bad corporate debts.<\/p>\n
Paul Volcker (former chairman of the U.S. Federal Reserve)
\ndescribes the current situation best when he said that below the
\nPresident there was no leadership.<\/p>\n
The President may have performed well, has the support of the
\npeople but policy implementation is another thing.<\/p>\n
Q: But isn't IBRA heavily politicized and that might have
\nhindered the economists?<\/p>\n
A: I don't think so. If they could sit together and agree on what
\nshould be done first, things could have started moving.
\nEspecially now that the Financial Sector Policy Committee (FSPC),
\nchaired by Coordinating Minister for the Economy, Finance and
\nIndustry Kwik Kian Gie, is in place. Should the IBRA chairman
\nencounter difficulties, he could always bring the matter to the
\ncommittee.<\/p>\n
Q: The establishment of the new team apart, is there really a
\nneed to set up the team?<\/p>\n
A: There is no need to set up the team. If one could talk to Pak
\nKwik very thoroughly and with good intentions, we should be able
\nto get over the problem.<\/p>\n
Q: So, it seems communication is a problem.<\/p>\n
A: There are a lot of complaints, not only from businesspeople
\nbut also from representatives of foreign finance institutions.
\nThey were dismayed by the difficulties to meet (with economic
\nministers). And if they did meet with them, their grievances were
\nnot appropriately addressed.<\/p>\n
Some foreign businesspeople said they understood the demerits
\nof a compromised Cabinet, but were confused when ministers from
\nthe same political party had opposite statements.<\/p>\n
Bank Indonesia and the Ministry of Finance, for example, do
\nnot see eye to eye. The bank officials and Pak Kwik play cat and
\nmouse.<\/p>\n
Q: What if a communication problem persists?<\/p>\n
A: Many say that we can't wait until August (when the People's
\nConsultative Assembly convenes to assess Gus Dur's performance).
\nThe economic condition will remain stagnant but perhaps it won't
\ndecline to a critical level.<\/p>\n
But if economic recovery is delayed, the burden keeps on
\npiling and the cost of bank recapitalization keeps on increasing.<\/p>\n
In fact, the crisis did not only bedevil the economic
\nministers but the whole government. What about the rampant
\nlooting on plantation and mining sites? This is a deterrent to
\nprospective investors.<\/p>\n
Q: Where does the factor of people's high expectations for
\neconomic recovery fit in the equation?<\/p>\n
A: I doubt that it has something to do with the people's
\npatience. There are some parties who are fanning the people's
\nemotions. How could you explain the heavy equipment used by
\nillegal diggers (in mining sites)? We urgently need firm action
\nfrom Jakarta, but there is none so far.<\/p>\n
Q: Senior economist Sarbini Soemawinata recently said Gus Dur
\nrules the country the way he leads a pesantren (Muslim boarding
\nschool)...<\/p>\n
A: The question is should we suit ourselves to his style or him
\nto us?<\/p>\n
Q: Do you think he should change his style?<\/p>\n
A: Of course. He should stop his penchant of making policy
\nstatements, most of the time without the knowledge of his aides.
\nThat's not a president. He seems to act in the way he has always
\nbeen: a kiai (Muslim scholar). If a statement proves wrong, he
\nlightheartedly revokes it. But in the meantime, the damage has
\nbeen done. He has to consult his aides before making a public
\nstatement.<\/p>\n
His recent meddling over Bank Indonesia's governor is a case
\nin point. Perhaps he does not like (governor) Syahril Sabirin; it
\nis too bad if he doesn't like him, but by no means he should
\nundermine his position because the law does not allow this to
\nhappen. It gives the impression that all is being enforced from
\nabove. How then does he differ from Soeharto?<\/p>\n
Q: Isn't it a learning process?<\/p>\n
A: I hope so, but does anybody dare tell him about that? (hbk)<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/new-economic-team-a-ridiculous-idea-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }