Commission wants govt to improve economic team

Fitri Wulandari, The Jakarta Post, Jakarta

Legislators said on Tuesday the government should improve the Cabinet's economic team by creating a solid and focused team capable of lifting Indonesia out of economic stagnation.

Commission C at the People's Consultative Assembly (MPR) said in a plenary session that a breakthrough was especially needed to significantly reduce the country's domestic debts, which currently total Rp 650 trillion.

"There have been a number of improvements in the country's economy, but we need an economic team that dares to make breakthroughs to bring Indonesia out of the crisis," said Bambang Sudibyo, chairman of the draft team at Commission C's sub- Commission C1 on finance and the economy.

Bambang, a member of the Interest Groups faction (FUG), said the country's foreign debts were easier to solve after Paris Club donor countries had agreed to reschedule the debts for another 20 years.

Domestic debt, on the other hand, has placed enormous pressure on the government, which has to provide Indonesian Bank Liquidity Funds (BLBI) and guarantee the banking recapitalization program, said Bambang

Another important proposal was for the government to reform the tax collection system by first improving law enforcement to prevent corruption, collusion and nepotism.

"The government should also increase revenue from cigarette duties because current cigarette prices are too low compared with other countries," he added.

Another member of sub-commission C1, Paskah Suzetta, proposed the government privatize state-owned enterprises and sell assets belonging to the Indonesian Banking Restructuring Agency (BPPN).

"The government should also make a clear-cut strategy before it decides to end its dependence on the International Monetary Fund (IMF)," said Paskah.

During the plenary session, the Indonesian Democratic Party of Struggle (PDI Perjuangan) also proposed that deliberations of a special decree on economic recovery be carried out by Commission C at the People's Consultative Assembly (MPR) instead of Commission B.

Sukowaluyo Mintorahardjo, secretary of PDI Perjuangan faction at Commission C, argued it was more relevant to treat the draft on economic recovery as a recommendation as it related to the President's ability to tackle the economic crisis.

"It will be more integrated with other discussions in the Commission C," Sukowaluyo told reporters on Tuesday, as quoted by Antara.

Commission C at the MPR's Annual Session is tasked with drafting recommendations for the President and other high-level state institutions in response to their progress reports delivered at the Annual Session.