Businesspeople disappointed by govt revelation

Businesspeople disappointed by govt revelation

JAKARTA (JP): Government explanations on the budget and
financial matters to businesspeople were disappointing as they
did not address the most basic issue on how to revive local
businesses, a businessman said yesterday.

Property businessman Muhammad Hidayat said after attending a
1998/1999 budget briefing at the Ministry of Finance yesterday
that he was disappointed by government explanations which he said
were very superficial.

"I'm disappointed because the government did not give clear
and direct answers to our concerns. Their explanations, as usual,
were vague," Hidayat said.

"When I asked what the government would do to revive dying
businesses, I was given a circular answer," he said.

The budget briefing, which was closed to the media, was
attended by about 100 businesspeople.

On hand at the briefing were Coordinating Minister for Economy
and Finance Saleh Afiff, Minister of Finance Mar'ie Muhammad,
Minister of Industry and Trade Tunky Ariwibowo, Minister of
Forestry Djamaluddin Suryohadikusumo and Minister of Manpower
Abdul Latief.

Hidayat, former chairman of the Indonesian Association of Real
Estate Developers, said the government did not give any
indication of when the tight monetary policy would end.

"Mar'ie said if liquidity was eased, the money would not go to
businesses. He feared the money would be used by irresponsible
people to speculate on the dollar," he said.

"That's an excessive fear on the part of the government. The
government should hear our concerns.

"We really want the government to supply more liquidity and
press down bank lending rates. During this situation, no single
bank dares to disburse credit to us," he said.

If the government continued to keep liquidity tight and
interest rates high, Hidayat predicted 80 percent of businesses
in the property sector would go under.

Last year alone, he said, 1.4 million people lost their jobs
due to the crisis.

This year, he predicted, two million people would be
unemployed. They would mainly come from the property sector.

"So what the government really wants is unclear. I'm really
disappointed," he said.

Businessman Iman Taufik said the government was transparent in
giving their explanations pertaining to the state budget.

"After hearing government explanations on the 1998/1999
budget, I've become more optimistic that we can reach 4 percent
growth this year," he said.

Iman, a chairman of the Indonesian Chamber of Commerce and
Industry, said the government should help disburse loans to
businesses, especially small and medium ones, to prevent more
layoffs.

He repeated the chamber's call that all domestic transactions
be done in rupiah, rather than in dollars, to ease pressure on
the rupiah.

The chairman of the Indonesian Importers Association, Amirudin
Saud, shared the chamber's suggestion and said the government
should require all importers, when importing goods, to open
letters of credit to monitor the use of dollars.

He also called on the government to require all people
transferring dollars abroad worth more than US$50,000 to declare
the purpose of doing so.

"If the purpose is not clear, the government should impose a
tax on such transfers," Amirudin said. (rid)