Wed, 09 Oct 2002

Crisis center awaits President's approval

The Jakarta Post, Jakarta

Plans for a crisis center to coordinate government policies and balance the interests of different economic sectors requires President Megawati Soekarnoputri's approval in order for it to work, said the National Economic Recovery Committee (KPEN).

"A crisis center won't be effective without a political umbrella from the President," KPEN chairman Sofyan Wanandi told reporters on Tuesday.

The government, with urging from the private sector, set up a crisis center last month to resolve long-standing business problems that often require different ministries to handle them.

Led by Minister of Industry and Trade Rini MS Soewandi, the crisis center focuses on coordinating the policies of different ministries for putting together workable solutions.

Sofyan said that Rini had proposed to the State Secretariat that the crisis center come under a presidential decree. So far there has been no response.

For now, the crisis center may only issue policies within Rini's position as minister of industry and trade.

From the onset, however, analysts have expressed doubt over the crisis center's ability to solve complex problems precisely because Rini heads it.

They said the center should be led by Coordinating Minister for the Economy Dorodjatun Kuntjoro-Jakti.

Many problems plaguing businesses here concern the involvement of different ministries.

Among the latest is a mining dispute over protected forests, which has called the Ministry of Forestry and the Ministry of Energy and Mineral Resources into action.

Trade issues also often drag the Ministry of Agriculture into conflict with Rini's office, and in some cases both come out with conflicting policies.

Sofyan said that many solutions approved together by various ministries were bogged down during their implementation.

"There are a lot of big egos in the ministries, so as long as ministers lack the good will to resolve problems together, then any deal they make along with their director-generals won't be optimal," he said.