Thu, 03 Jul 1997

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)