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)