PDI, PAN, PBB support foreign investment but criticize IMF<\/p>\n
Political and legal issues, including investigating former
\npresident Soeharto and the threat of separatism, dominate the
\ncurrent political campaign. Economic issues, including those on
\nforeign investment and the role of the International Monetary
\nFund (IMF), are barely touched upon by any political party during
\ntheir campaign. The Jakarta Post talked recently to the leaders
\nand economic experts of three major parties -- the Indonesian
\nDemocratic Party of Struggle (PDI Perjuangan), the National
\nMandate Party (PAN) and the Crescent and Star Party (PBB) -- on
\nthe issue.<\/p>\n
JAKARTA (JP): If the general election results in a change of
\nthe country's leadership, what will happen to foreign
\ninvestments?<\/p>\n
The question is crucial in light of the fact that foreign
\ninvestments have played a dominant role in the country's economy.<\/p>\n
Foreign investments which dominated the oil and gas and mining
\nsectors before the crisis have expanded into other sectors. Some
\nmajor foreign giants have expressed their commitment to enter the
\nbanking sector, while several others might soon take over some of
\nthe country's debt-laden conglomerates.<\/p>\n
Foreign investors' dominance has sparked jealousy in many
\nlocal businesspeople. Most political leaders, however, are not
\nreally bothered by the foreigners' paramount role.<\/p>\n
PBB's deputy chairman, Farid Prawiranegara, PDI of Struggle's
\nsecretary general, Laksamana Sukardi, and PAN's economic expert,
\nM Nawir Messy, said they could accept the reality.<\/p>\n
If anything, they said, foreign investment was needed to speed
\nalong the country's economic recovery.<\/p>\n
\"For us, ownership is not an important issue. Soeharto's
\nadministration made it an important issue, to allow his children
\nand cronies to acquire some shares in the companies for free,\"
\nFarid said.<\/p>\n
\"What is more important for PBB is that workers should have
\ntheir representatives in companies' management -- be they foreign
\ncompanies or local companies -- to allow them to participate in
\nthe companies' supervisory board,\" Farid said.<\/p>\n
PBB would propose for an amendment of the Corporate Law to
\nmake the participation of workers in the supervisory board as
\nobligatory.<\/p>\n
PDI of Struggle vowed to promote a sound market economy in the
\ncountry to lure global capital market.<\/p>\n
\"As (PDI chairwoman) Megawati (Sukarnoputri) said in a recent
\nmeeting in Singapore, 'We share the market (that is) interlined
\ntogether',\" Laksamana said.<\/p>\n
Laksamana said PDI of Struggle has made \"Restoring Confidence\"
\nas its main economic platform given the fact that the country has
\nlost the confidence of the international business community as a
\nresult of economic and political turmoil.<\/p>\n
Under the Restore Confidence agenda, PDI of Struggle will seek
\nto provide legal certainties, create social stability and promote
\nclean governance.<\/p>\n
\"This is, in fact, a long-term program but it must be carried
\nout in tandem with any short-term and middle-term programs given
\nthe urgency of handling the issue,\" Laksamana said.<\/p>\n
Nawir said PAN's team of economic experts realized the
\nimportance of foreign investment, but \"Indonesia should not be
\ntoo dependent on foreign capital\".<\/p>\n
Indonesia should also make a regulation to prevent foreign
\ninvestors from controlling all aspects of the country's economy.<\/p>\n
For PAN's economists, Nawir said, the government should find
\nnovel ways to increase income from domestic resources to finance
\nits developmental programs rather than asking for more loans from
\nforeign financial institutions and governments.<\/p>\n
Social damage<\/p>\n
The three political leaders supported the IMF's role in
\nhelping Indonesia survive the crisis. But they criticize the
\nagency for giving \"too much\" instruction to the government.<\/p>\n
Laksamana praised the IMF for its \"successful efforts to
\ncontain the damage caused by the crisis on the country's
\neconomy.\"<\/p>\n
\"So far, so good,\" he said, crediting the country's currency
\nstabilization and the decreasing trend in the country's inflation
\nrate to the IMF, which has arranged billions of dollars in
\nbailout funds to cover Indonesia's worst ever crisis.<\/p>\n
But, Laksamana said, the government's high interest rate
\npolicy as dictated by the IMF has caused \"social damage\".<\/p>\n
He also criticized the privatization program being carried out
\nby the government on the IMF's instruction, saying the timing was
\nnot right to sell the assets of state companies.<\/p>\n
\"Offering the assets now is only wasting time because no one
\nis going to buy them.<\/p>\n
\"The privatization should be carried out systematically and
\nwith the right timing,\" Laksamana said.<\/p>\n
Laksamana said the IMF had always consulted with PDI of
\nStruggle before signing any letter of intent with the government,
\nand the IMF had mostly \"heard\" the party's opinions, except for
\nthe privatization issue.<\/p>\n
Farid blamed the IMF for the economic hardship currently being
\nexperienced by the country.<\/p>\n
\"If the Crescent Star Party wins the election, we shall face
\nIMF in a different way. We shall not ask it for money but demand
\nit be held responsible for all that has happened in the country,\"
\nFarid said.<\/p>\n
Farid blamed the IMF for making blunders in carrying out its
\neconomic recovery program since it was not backed up with a good
\npolitical analysis of the situation in Indonesia.<\/p>\n
He accused people like Coordinating Minister of Finance,
\nEconomy and Industry Ginandjar Kartasasmita, PAN's chairman,
\nAmien Rais, the People's Awakening Party's chairman, Abdurrahman
\nWahid, and Megawati -- with whom IMF has often consulted with --
\nas giving misleading political judgments to the IMF.<\/p>\n
\"The IMF is an experienced organization. Why has it made
\nmistakes in Indonesia? Undoubtedly because it received wrong the
\ninput from the wrong people,\" Farid said. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pdi-pan-pbb-support-foreign-investment-but-criticize-imf-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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