Habibie's team gets cautious welcome
JAKARTA (JP): The local business community gave a cautious welcome to the appointment of the country's economic team in President B.J. Habibie's new cabinet, though international financial institutions received the news more warmly.
Domestic business associations and economists doubted the capability of the economic line-up to tackle the country's enormous economic problems, since Habibie and the cabinet as a whole lack popular support.
The World Bank and the Asian Development Bank (ADB), however, said they were happy with the new economic team and ready to cooperate with it.
Chairman of the Indonesian Importers Association Amirudin Saud said the new cabinet did not reflect reform because some of the ministers had served under Soeharto for several terms, including Ginandjar Kartasasmita and Akbar Tandjung.
Ginandjar retains his position as coordinating minister for economy, finance and industry, while Akbar, former minister of public housing, is now minister/state secretary.
"I'm really disappointed because it's a 180-degree turn from what Habibie said yesterday (Thursday) that he was willing to accept input," he told The Jakarta Post.
Ministers with academic backgrounds turn out to come from the same circles, including from the Association of Indonesian Moslem Intellectuals (ICMI), he added.
The chairman of the Indonesian retailers Association, J.A. Sinungan, said he was also disappointed after learning that the new cabinet consisted of many technocrats and academics "at a time when we need good field people".
"I'm still skeptical of the capabilities of these people. We cannot rely on economic theories anymore," he said.
The chairman of the Indonesian Footwear Association, Anton J. Supit, said he had learned that foreign investors, who were informed through international press, "doubt our credibility".
"The task of the new cabinet is to change this image and perception. They must do this by being consistent in forming and executing their policies," Anton said.
Pande Raja Silalahi, an economist at the Center for Strategic and International Studies, said the new economic team was "relatively weak".
"This cabinet tries to include various elements of society but I see this poses another problem in that it will not be able to coordinate well within itself like a good orchestra should.
"Looking at this relatively weak economic band, I'm quite pessimistic that this cabinet can get us through these turbulent times safely," he said.
Umar Juoro, an economist from the Center for Information and Development Studies, argued that Habibie's cabinet should be given a chance to mend the economy.
"Let's allow the cabinet to repair the economy and the House of Representatives to initiate political reform," he said.
The World Bank's country director, Dennis de Tray, said here that the bank welcomed the new economic team.
"Generally I was impressed by the quality of the selections to the new cabinet, and I was especially pleased at the broader economic team selections," he told Reuters.
"This new team has a tremendous challenge ahead of it and the World Bank is ready to start working with them immediately."
He added that a number of items still needed clarification, "but certainly naming a quality cabinet like this is a very important first step".
In Manila, an ADB senior official said the bank saw Habibie's economic team in a positive light.
The official also said he hoped there would be a decision by next Tuesday or Wednesday on whether the ADB would go ahead with its planned US$1.5 billion loan for Indonesia.
He called the economic line-up in the cabinet "a team we can work seriously with. I would be very confident with those people." (aly/das/rid)