Indonesian Political, Business & Finance News

Hartono makes cabinet debut

| Source: JP

Hartono makes cabinet debut

JAKARTA (JP): The monthly cabinet meeting to discuss the
economy ended yesterday on a different note than what journalists
had been accustomed to over the past 14 years: The latest
economic indicators were announced by Gen. (ret.) Hartono.

This was Hartono's debut as information minister, a position
he assumed last month when replacing Harmoko, who had held the
post for three terms since 1983.

Harmoko, who is widely expected to become next speaker of the
House of Representatives in October, had been appointed state
minister for special assignments. He was not present at
yesterday's meeting.

Hartono, the former Army chief of staff who officially retired
from the service June 30, appeared at ease as he briefed
journalists about the results of the meeting.

While Harmoko usually appeared alone, Hartono was accompanied
by Coordinating Minister for Production and Distribution
Hartarto.

Hartono said he preferred being accompanied by a minister with
an economic portfolio to help him explain about some of the
technical details. "The ministers know more about technical
policies of their ministries," he said.

Hartono however said he was not a complete novice when it came
to economic matters, saying that he had been monitoring economic
indicators since his Army years.

The economy is crucial to the country's security and order, he
said. "It's a very sensitive issue, and it has a large impact on
security," Hartono said.

Asked about his impression of his first participation of the
cabinet meeting, he said: "This is my first experience, other
ministers were very helpful in giving me advice on the topics
that I should convey to you."

While different in style, Hartono did not depart from the
tradition established by Harmoko. Aside from giving a rundown of
topics at the meeting, Hartono also announced some of the latest
economic indicators.

They included:

* A recorded $2.1 billion trade surplus in the four months
between January and April, composing of $16.3 billion in exports
and $14.2 billion in imports

* A rise in foreign exchange reserves. Official foreign
exchange reserves at the end of June reached $21.83 billion, up
from $20.98 billion in May. The amount is enough to finance
Indonesia's import needs for 5.5 months.

* A deflation of 0.17 percent in June. Food prices fell 0.73
percent, housing prices went up 0.27 percent and clothing went up
0.01 percent. The figure was based on the consumer price index.

"President Soeharto underscored the need to keep inflation
under control by ensuring a smooth flow of goods and services,"
Hartono said.

The cabinet meeting discussed the government's poverty
alleviation drive, the promotion of small and middle-scale
businesses and cooperatives, and the development of provinces
outside Java and Bali, Hartono said. (06)

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