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)