Confidence building seen as top priority

JAKARTA (JP): The biggest challenge for the new cabinet ministers will be to restore both domestic and international confidence in the country's economy, outgoing Minister of Industry and Trade Tunky Ariwibowo said yesterday.

"Our main problem now is that we have lost the confidence of the global community because of the crisis, and it is hurting our industries," Tunky told journalists at his farewell luncheon with members of the media.

The loss of global confidence in Indonesia would hamper the country from achieving its target in exports, he said.

"My main regret is that the target to increase exports has not been reached while I was in office," he said.

Tunky said tasks such as making locally issued letters of credit (L/C) accepted by international banks or buyers, which have been increasingly hesitant to accept the L/Cs, would remain an assignment for the next minister of industry and trade.

Tunky said another great challenge for the new minister would be restoring the people's trusts in the government.

The government needs the support of its people, but this will not happen unless its measures are understood by them, he said.

"At times of crisis like now, it is very crucial that the people know what we do and why we decide to do it," he said.

Without the backing of the Indonesian people, he said, none of the government's policies would work.

"They must fully understand what you do in order to trust and support you," he said.

During his five-year term serving as industry and trade minister, Tunky was known as a communicative and accessible leader both to the private sector and to the media.

It has been widely circulated that the former president of the state-owned Krakatau Steel will be replaced by timber mogul Muhammad "Bob" Hasan, at the expected announcement of the new cabinet today.

This has been criticized by intellectuals and economists who argued that President Soeharto's golf buddy Bob Hasan has been benefiting from nepotistic government facilities and that his business practices were monopolistic.

Asked his comment on the possible appointment of Bob Hasan as his replacement, Tunky remained tightlipped.

Tunky, who celebrated his 62nd birthday yesterday, said he would go back to his previous position as a member of the board of Krakatau Steel should he lose his ministerial position. (das)