Cabinet has great economy team

Cabinet has great economy team

A number of experts share their views on the Cabinet with The
Jakarta Post. Among them, senior economist Muhammad Sadli, also a
minister for several years during the New Order government, gives
a thumbs-up to the new economic team.

Question: The new Cabinet's program for the economy is said to
kickstart the economy and strengthen the basis for the nation's
economy. Is the program adequate for addressing our economic
problems?

Answer: The program has accommodated the aspirations of
various parties and the Cabinet is expected to set out the
priorities. President Megawati Soekarnoputri is right in setting
two goals for her economic program -- meeting the demands of the
market, creditors and investors, and strengthening the nation's
economy. She apparently knows that the latter needs support from
the state budget, which depends partly on financial aid from
creditors in the Consultative Group on Indonesia (CGI). The
country's success in obtaining this aid will depend on its
success in signing letters of intent with the International
Monetary Fund (IMF).

Are the new economics ministers competent to execute the
program?

Yes, they are. They are the best we could have, even though
I'm slightly disappointed that economist Sri Mulyani Indrawati is
not included. The appointment of Budiono as finance minister, for
example, is good. As a senior and experienced official, he will
be respected, both by officials and legislators. Coordinating
Minister for the Economy Dorodjatun Kuntjoro-Djakti also has a
good reputation, even though his expertise in domestic affairs
still needs to be proven. Minister of Industry and Trade Rini
Suwandi is also intelligent and well-experienced.
Will the economics ministers be able to develop strong teamwork?

That will depend on the leadership of the President and Vice
President Hamzah Haz. Anyway, if the ministers were to prioritize
their personal or group interests, many would feel free to
criticize them, given the current climate of openness and
democracy. So we needn't worry ...

How about their integrity?

We cannot expect the ministers to be as pure as angels. Nice
boys generally can't govern a country.

What if ministers, given that many are party officials, try to
collect funds by abusing their positions?

That's all right, as long as they do not violate any rules and
regulations. Corruption is a political risk. Anyway, we now have
many watchdog organizations ... Minister of Finance Budiono seems
to be "clean".

Will Megawati implement a hands-on or hands-off management
style in leading her Cabinet?

I hope she will not dictate to her Cabinet members too much.
Instead, she is expected to delegate jobs to them and appreciate
their initiatives.

What are the prerequisites for the Cabinet members to work
effectively?

They should not be distracted politically by the House of
Representatives (DPR) or other parties, particularly those who
think that the Megawati government -- which includes a number of
generals -- is the start of a return to a repressive regime.

How can Cabinet members make quick decisions and moves, while
sustaining good relations with the House, which has to approve
most of the reform measures?

They will have to do that because that is the current rule of
the game. Ministers, therefore, must now be politically sociable,
communicative and astute to assure House members about the
importance of their programs. Fortunately, many of the current
Cabinet members are former members of the House.

Anyway, I'm sure that the House will not repeat any political
conflict with the President and that Megawati will be extra-
careful in carrying out her presidential tasks.

Since the Indonesian Bank Restructuring Agency (IBRA) plays a
central role in crisis management of the economy do you see any
need to replace the IBRA chief?

I don't know about that.

Will the international community and market players respond
positively towards the new economics team?

Sure. Its members are market-friendly and IMF-friendly.
Dorodjatun, who became Indonesian envoy to the United States for
about three years, for example, knows much about the Washington-
based IMF.

So, do you foresee good prospects for the economy in the
future?

Yes. The rupiah's value is expected to strengthen against the
U.S. dollar and economic growth will likely reach 4 percent,
instead of the previously predicted 3.5 percent this year. (Rikza
Abdullah)