Businesspeople await implementation of reforms

JAKARTA (JP): Businesspeople agreed yesterday that the reform program set out by the government Thursday was good, but warned that negative sentiments would remain until the election of the country's new president in mid-March.

The chairman of the Indonesian Chamber of Commerce and Industry, Aburizal Bakrie, said the massive reform program and the establishment of a special presidential team to monitor its implementation should actually impress the market.

"We hope this reform package will be able to revive our dying national economy," said Aburizal, also chairman of the Bakrie Group.

Sofjan Wanandi, chairman of the Gemala Group, said the reforms were good. But looking at market reaction to the announcement of the reforms, foreign inventors seemed in doubt about the government's seriousness in implementing them.

"This negative reaction shows that foreign investors are still skeptical about our efforts, there must be something wrong here," Sofjan told The Jakarta Post.

"The package itself is good, that is why we all must support it. But foreign investors think we're not going to implement it," he said.

Sofjan said the political situation was making things more difficult and it was critical to mend the Indonesian economy. He said there were many unresolved political issues regarding the presidency and vice presidency.

As foreign investors awaited the program's implementation, negative sentiment could persist for six more months, or at least until the convening of the People's Consultative Assembly to choose a new president and vice president in March, Sofjan said.

Fahmi Idris, an executive with the Kodel Group, shared Sofjan's argument, saying the government had to follow up the massive economic reforms with political reforms.

"This must be followed up by reforms in other sectors, especially in politics. And the political reform process should start with the empowerment of the House of Representatives," Fahmi said.

"If the House is on a par with the executive branch, I believe a more democratic life in our country would result as the House could effectively exercise its check and control function," he said.

Speaking on reforms, Fahmi said they showed the government's seriousness in pursuing a healthy economy. But again, their implementation would determine the quality of the reforms.

Sofjan was more skeptical about the implementation of reforms as he saw many bureaucrats half-hearted in handling the crisis.

"I'm afraid they won't seriously implement the reforms. They might even drag their feet on the elimination of the monopolies, and this could create more market distortion," he said.

The elimination of the State Logistics Agency's (Bulog) monopoly over food commodities must be monitored cautiously to prevent worse market distortion, he said.

"I urge those who have enjoyed the benefits of the monopolies for 25 years to surrender their privileges. I strongly urge all parties to be united and stop pointing fingers at each other," Sofjan said.

He suggested that all parties show togetherness as a nation to cope with the crisis in order to restore investor confidence.

"People will not be willing to suffer if they see others who are not suffering," Sofjan said.

"This is the only momentum behind our survival, whether we are going to restore confidence or not," Sofjan added.

The government and other responsible parties should not follow the move by blaming each other, he said.

He also criticized the military's recent call for 13 prominent businesspeople to sell their dollars to support the rupiah.

"This kind of statement is counterproductive. Instead of blaming each other, why don't we seek a solution?"

He suggested that the monetary authority intervene in the market soon to supply needed dollars, which had become scarce.

Exporters must immediately begin to exchange their dollars for rupiah as well, he said. But everything must be done voluntarily, without any pressure from any party. Everything should be based on clear rulings. (das/rid)

Criticism -- Page 2

Memorandum -- Page 5

Related stories -- Pages 11, 12