Govt policy on economic councils criticized

Govt policy on economic councils criticized

JAKARTA (JP): The government needs to review the membership of
the newly established economic and business councils in order to
ensure their independency in advising the President, noted
economist Sjahrir said on Wednesday.

Speaking at the year-end briefing of the Indonesian Chamber of
Commerce and Industry (Kadin), Sjahrir said that members of the
two councils should be freed from both political and business
motives.

President Abdurrahman Wahid last month established the
National Business Development Council and National Economic
Council to help him revive the country's economy.

The business council, whose members comprise of senior
businessmen, was set up to provide input on the microeconomic
sector while the economic council, which comprises of noted
economists, is to advise the President on macroeconomic matters.

Sjahrir criticized the current members of the business
council, saying many of them were owners of companies which had
been put under the control of the Indonesian Bank Restructuring
Agency (IBRA) for their inability to pay their debts to state
banks.

"It is impossible for them to give advice without taking into
account their own business situations," Sjahrir told the
briefing.

"We also cannot expect that businesspeople like Sofyan
Wanandi, Aburizal Bakrie and Arifin Panigoro can be free from
politics because of their positions as presidential advisors as
every statement they make contains political issues," he said.

He also criticized the members of the National Economic
Council (DEN) whose duties are to analyze economic problems and
provide input for the President.

The council consists of people who were responsible for the
economic distortion resulting from the introduction of a clove
monopoly in the past, he said in a reference to Subiakto
Tjakrawerdaya, former cooperatives minister under Soeharto.

Subiakto, who was named vice chairman of the council, was
known for his strong support for the establishment of the Clove
Market and Stock Managing Agency (BPPC), led by Soeharto's
youngest son Hutomo Mandala Putra, better known as Tommy. The now
defunct agency which monopolized the clove trade had caused great
losses to clove farmers. (06)