Habibie's team gets cautious welcome
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)