Global ties vital, says Hasan

JAKARTA (JP): Controversial new Minister of Industry and Trade, Mohamad "Bob" Hasan, said yesterday that Indonesia ought to continue cooperating with the international community in order to escape the economic crisis.

"We need to cooperate with foreign parties because what we are dealing with here are global issues," Bob said at his first press conference as a minister, two hours after President Soeharto swore in his new 36-member cabinet.

Bob said that he did not yet have any specific plans to manage the industry and trade department as he had just entered the new post.

"I'm a new person here... it's like a jungle... I'll have to ask around first before I can answer you," he said in reply to a question on what he was going to do after replacing former minister Tunky Ariwibowo.

He said he would concentrate on guaranteeing the supply and distribution of essential staples and help the country's ailing industries survive the current crisis.

Bob, a timber tycoon and Soeharto's golf and fishing companion, asserted that monopolies were acceptable if conducted in "the interests of the people".

However, he did not have much to say about criticism carried in the domestic and foreign media over his appointment to one of the most important economic postings in the cabinet.

"It's a free country, anyone can make their judgment," he said.

But he added that the negative market reaction caused by his appointment had been exacerbated by equally negative foreign reports on the country's situation.

"Foreign reporting on our country is not friendly if they feel that they cannot benefit from us," he said.

"They are only nice to us if they want something from us. But if they can no longer benefit from our commodities or if they fell threatened by our exports, they start attacking us," Bob said.

The garish Bob is the first ethnic Chinese to hold a ministerial post during the 31 years of Soeharto's New Order administration.

Most domestic and foreign analysts expressed concern that Hasan's appointment to the cabinet would present a conflict of interest with his vast business empire and signal to the markets that the government was not serious about undertaking economic reforms.

Analysts also felt that Hasan, who's cartel-like plywood marketing practices were stopped at IMF request, would not help improve the rapport between the government and the donor organization.

Hasan said he had given up all his business positions, but would still retain his interests in certain sports organizations, including his roles as president of the Asian Athletic Association and vice chairman of the Asian Olympics Council.

He will also retain his position in some charity foundations, including the Dharmais Foundation and the Supersemar Foundation, which are chaired by Soeharto.

Other economics ministers also negotiated their first day in office without saying anything substantive to the media on the country's worst ever economic crisis, claiming that they had to wait for directives from President Soeharto.

The President will hold his first cabinet meeting today.

Finance Minister Fuad Bawazier told reporters: "I have nothing to say right now. We are all waiting for guidelines from the President at the first cabinet meeting. I'm sure that important issues will be addressed after the meeting.

State Minister for the Empowerment of State Enterprises Tanri Abeng, came to the Ministry of Finance to meet with the director general for state enterprises Bacelius Ruru yesterday. He said that he could not yet disclose his ideas for the new ministry over which he will preside.

"We've just had a brief meeting. Nothing can be disclosed yet because I have to speak to Pak Harto again," said Tanri.

But he stated that he had relinquished his position as the chief operating officer in Bakrie Brothers Group.

He said that state enterprises under the Strategic Industries Supervisory Agency (BPIS) should eventually come under his ministry. "But it will be done in stages," he said, when asked by reporters about the issue.

Chairman of BPIS was among the many strategic posts held by Indonesia's new Vice President B.J. Habibie. He recently handed over his post as president director of three BPIS companies -- aircraft manufacturer PT IPTN, ship builder PT PAL, and weapons and military equipment manufacturer PT PINDAD.

BPIS also controls seven other state firms, including telecommunications equipment manufacturer PT Inti, railway equipment manufacturer PT Inka, electronics equipment manufacturer PT LEN Industri, engineering firms PT Barata Indonesia and PT Bosma Indra, and explosives manufacturer PT Dahana.

Former State Minister of Development Planning Ginandjar Kartasasmita, who is now Coordinating Minister for Economics, Finance, Industry, and National Development and Planning, said that the current crisis would give him a tough job.

"I don't have anything to say right now. Give me some time," he told reporters yesterday.

He explained that there would be major restructuring undertaken because his office now coordinates two additional sectors, Industry and National Development and Planning.

"Consolidation is not an easy job. I will arrange the new organization as soon as possible and expect to get the President's approval," he said.

Former Finance Minister Mar'ie Muhammad received a thunderous ovation when he handed over his position to Fuad.

"My family and I... would like to thank the President for the trust and honor placed in us," he said in his farewell speech, adding that he expects both the domestic and international community to support the new finance minister.

Mar'ie, popularly nicknamed Mr Clean on account of his high integrity, ended his speech with a note of optimism, saying that Indonesia would eventually emerge from it's worst ever economic crisis. (das/08)