Tue, 26 May 1998

Habibie outlines reform program

JAKARTA (JP): President B.J. Habibie outlined his agenda for reform before his 36-strong cabinet yesterday, including plans for the revision of political laws needed before he can call a general election.

Habibie led the inaugural meeting of the cabinet he installed on Saturday at the Bina Graha presidential office, and set out the priorities for reform during his presidency.

The government's chief priority was to root out corruption, collusion and nepotism, and create a clean government, he said in his 24-page address.

He made no mention of when he hoped to call for either a general or presidential election.

But Minister/State Secretary Akbar Tandjung said after the meeting that a general election would be held as soon as the government, in cooperation with the House of Representatives (DPR), completed drafting new political laws.

"Once they are enacted, the President can call for the election within one week," Akbar told reporters.

Several senior members of Habibie's cabinet had made it clear that they had accepted office with the understanding that this was a transitional government which would prepare for new elections and subsequently a new government.

Akbar said that to call the new administration transitionary was incorrect, but added: "Basically, implementing reform means to hold a general election as quickly as possible".

Habibie in his speech said the government could immediately start reviewing the five political laws upon which the current political system is build.

They are the laws on mass organizations, the House of Representatives (DPR), the People's Consultative Assembly (MPR), political parties, regional administrations, and elections.

Habibie also added that the law on subversion should be revised immediately.

Habibie recognized the problem of legitimacy which his government had in the eyes of many people.

"I understand that some members of the public are still questioning the legality and legitimacy of this government.

"We must accept all those opinions gracefully," he said.

He also said the government would work hard to prepare for holding a clean and democratic general election.

He called on his ministers to draw up a national reform agenda and proposed seeking a national consensus to limit the number of five-year terms a president can serve to a maximum of two.

These steps, he said, were vital to restore public confidence in the government.

The president ordered his ministers to carry out sweeping reform in all sectors, including in political, economic and legal fields, to enable the government to satisfy mounting demands for a strong and clean government.

Habibie said he planned to establish a Reform Working Group, which will consist of prominent public figures.

He assigned State Minister of the National Development Planning Board Boediono, Minister of Home Affairs Syarwan Hamid, and Minister of Justice Muladi to assist the group.

Habibie first discussed the idea when he met with a number of government critics, including Amien Rais and Emil Salim, on Saturday night.

According to Akbar, he is due to meet with them again today.

Habibie said the cabinet should immediately begin work on the two most pressing economic problems -- ensuring a sufficient supply of food and basic needs at an affordable price, and getting the wheels of the economy turning again.

To achieve this, he said the government should stabilize the rupiah exchange rate, control inflation, and implement the International Monetary Fund (IMF) reform agreement in order to restore foreign and domestic investor confidence.

Other objectives in his economic program include:

* Boosting output from the agriculture, agribusiness, export- oriented industry and tourism sectors.

* Safeguarding the implementation of the 1998/1999 state budget.

* Accelerating the bank restructuring program.

* Resolving the problem of corporate foreign debts.

Habibie ordered ministers to dismantle special facilities and privileges granted by the previous administration to certain people or business groups.

He also signaled his intention of becoming a "hands-on" president, saying that he will personally lead three cabinet meetings every month, one each to discuss the economy, politics and welfare.

His predecessor Soeharto only led the monthly cabinet meeting on the economy.

Habibie, a former technology minister, ordered his cabinet members to use the Internet to communicate with one another. (prb)