Wed, 13 Jun 2001

Burhanuddin who?

We mean no disrespect to Burhanuddin Abdullah, but his appointment as the government's new economic czar on Tuesday prompted more questions about President Abdurrahman Wahid's intentions or priorities in resolving the country's economic problems. With little explanation from the President, the country was simply left guessing once again about the rationale or the logic behind this latest mini-reshuffle of his Cabinet.

Burhanuddin is a little known deputy governor of the central bank with a stint at the International Monetary Fund (IMF). That much we know. Given the current strained relations between the government and the IMF, we can only speculate that Burhanuddin was picked to help smooth these relations, and pave the way for the disbursement of a loan tranche that has been held back for a few months now. Another way of looking at his appointment is that, given his central bank experience, he could cement better relations with Bank Indonesia Governor Syahril Sabirin and ensure that the country's monetary policies are better coordinated.

Burhanuddin's predecessor Rizal Ramli, who was demoted to become the new minister of finance in place of Prijadi Praptosuhardjo, has been taking a more anti-IMF stance in recent weeks, perhaps in apparent frustration at the delay in the IMF loan disbursement. Reflecting the President's personal animosity toward Bank Indonesia Governor Syahril, Rizal also failed to coordinate his policies with the central bank. The rupiah has continued to slide in the last six months even as the monetary authority was hiking interest rates.

On these two counts, Burhanuddin's appointment makes sense. But the demands of the job of a coordinating minister for the economy go way beyond just striking the right chords with the IMF and the central bank. Rizal's biggest failing in fact has not been in his relations with the IMF or Bank Indonesia. Where he did fall short most was in his relations with the House of Representatives. The House has repeatedly blocked many of the government's economic programs that would have satisfied the IMF and lead to the disbursement of the tranche.

The House, for example, has prevented the speedy disposal of some of the corporate assets in the possession of the Indonesian Bank Restructuring Agency (IBRA). The sales of Bank Central Asia and Bank Niaga, which would have raised significant funds to help plug the government's budget deficit, have been put on hold thanks to the House's stubbornness.

In selecting his new economic czar, the President should have looked for someone with strong political negotiating skills, someone capable of pushing the government's economic programs through the complex legislative procedures. Time will tell whether or not Burhanuddin fits that bill. In all earnest, he should be given the chance to prove himself in his new job. We should all extend our support, if not sympathy, as he begins this very daunting task.

The little explanation that came with the latest changes in the Cabinet again illustrates an Abdurrahman administration that is becoming less and less transparent. For all we know, these changes were made to consolidate his position, and not, as some of his aides would have us believe, to appease his critics or to strike a political compromise with his rivals.

But with the President almost certain to be impeached in less than two months, anything is possible now, even the irrational, illogical or simply irrelevant, like some of the recent changes in the Cabinet.