Experts doubt crisis center able to solve problems
Experts doubt crisis center able to solve problems
The Jakarta Post, Jakarta
The newly set-up crisis center under the Ministry of Trade and
Industry might not be effective in resolving pressing problems
faced by businesses here due to its lack of administrative power,
experts said.
They argued that the crisis center should have been set up
under the Office of the Coordinating Minister for the Economy.
Sri Adiningsih, an economist with the University of Gadjah
Mada, said that the problems faced by businesses were very
complex and required integrated efforts involving various
institutions before they could be resolved.
"This is a big problem. It would be more effective and
flexible if the center were led by Dorodjatun Kuntjoro-Jakti as
he can easily coordinate with the other relevant departments,"
Sri told The Jakarta Post, referring to the Coordinating Minister
for the Economy.
Minister of Trade and Industry Rini MS Soewandi officially
launched the crisis center on Monday.
Its main objective is to help resolve long-standing problems
faced by business people in doing business in this country, a
move that would also in turn help prevent foreign investors from
fleeing the country.
Members of the crisis center will include government officials
and business people.
Rini claimed that President Megawati Soekarnoputri had also
approved the establishment of the crisis center.
Rini is expected to soon issue a ministerial decree
formalizing the center's establishment.
Anton J Supit, chairman of the Indonesian Footwear Association
(Aprisindo), who will help run the daily operations of the crisis
center, said the immediate focus of the center would be labor
conflicts, smuggling and security problems.
"If the crisis center fails to provide solutions, Ibu Rini
will bring the problems to the cabinet meeting," Anton told The
Post.
Indra Ibrahim, executive director of the Indonesian Textile
Association (API), also said that the crisis center would be more
effective if it was under Dorodjatun's office.
"But still, we welcome it (the crisis center), because it's
better than doing nothing at all," he added.
A source said that Dorodjatun had turned down an initial offer
for him to lead the crisis center.
Both local and foreign investors have been facing various
problems in the country. The Investment Coordinating Board
(BKPM) said that foreign direct investment (FDI) approvals
dropped by 42 percent to US$2.5 billion in the first semester of
this year compared to the same period last year while domestic
investment fell by 70 percent to Rp 11.1 trillion.
Despite the concerns, Sri hailed the move by Rini to set up
the crisis center, saying that if successful it would help
restore investor confidence in the country, a crucial factor for
accelerating the economic recovery process.
"She (Rini) finally wants to take action," Sri said.