Business sector reacts positively to Soeharto's exit

Business sector reacts positively to Soeharto's exit

JAKARTA (JP): Economic and business figures responded
positively to Soeharto's resignation but expressed concern over
newly appointed President B.J. Habibie.

"It gives us some hope, but we can't tell whether the new
government will succeed until we see the new team," chairman of
the Indonesian Footwear Association Anton J. Supit told The
Jakarta Post yesterday.

Economist Anwar Nasution said challenges lay ahead for the
country under Habibie's leadership.

"We don't really know whether Soeharto actually brought the
problems to an end or left us with a time bomb," Anwar said.

Agricultural analyst Bungaran Saragih said he was pessimistic
about the new government since it was a continuation of the old
regime.

"Habibie has long been an aide to Soeharto, so it might be
hard for him to establish fresh measures," he said.

Anwar said the country had the potential for more conflict,
especially regarding the transition process to a new government.

Habibie "does not have a political base" to lead the country
like Soeharto did. He does not have close links with the military
or strong political and religious figures, he said.

Anwar said Habibie was also not "saleable", domestically or
internationally, because of his past reputation which could be
linked to corruption, collusion and nepotism.

"He appointed his own son as the president of IPTN (PT
Industry Pesawat Terbang Nusantara)."

Habibie was formerly president of the state-owned IPTN before
he was appointed vice president in March.

Anwar called the strategic industries under Habibie as "mere
parasites, which have not contributed much to the country's
development".

Anwar said Habibie's relationship with some of the country's
technocrats had not been very close.

"He did not get along well with other technocrats such as
(outgoing coordinating minister for economic, finance and
industry) Ginandjar Kartasasmita, both in policy measures and in
personal ambition."

To the international community, including the International
Monetary Fund (IMF) and the World Bank, Habibie's projects were
regarded as wasteful, he said.

"If we look at the 50 points of the IMF program, Habibie's
industries are among the most targeted by the Fund," Anwar said.

Anwar said Habibie's challenges included restoring the
confidence of the ethnic Chinese community, who make up 5 percent
of the country's population but control vast business interests.

Many ethnic Chinese, who are often the targets of angry mobs,
fled the country to seek refuge during last week's riots.

Chairman of the Indonesian Edible Oil Industries Nafis Daulay
agreed, saying that commodity trading activities ground to a halt
during the riots as many traders fled the country.

"I hope that this uncertainty will soon be over so that
trading activities can resume," he said.

Agriculture analyst Bungaran Saragih said Habibie needed to
immediately address the country's food crisis, a dilemma left
unsolved by Soeharto's administration.

Soeharto's policies limited food production while demands
continued to rise, he said.

His macroeconomic measures made the country depend largely on
imported food, which became very expensive after the rupiah's
sharp fall against the U.S. dollar over the last 10 months,
Bungaran said.

"Whoever the leader is, he cannot overlook the food crisis or
it could trigger more unrest."

"The stomachs of 205 million people in this country cannot be
told to wait," he said. (das/gis)