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)