Kadin forms committee to rejuvenate economy
JAKARTA (JP): The Indonesian Chamber of Commerce and Industry (Kadin) announced on Wednesday the lineup of the National Economic Rehabilitation Committee, which will advise the government on efforts to reinvigorate the crippled real sector.
The committee, chaired by businessman Soegeng Sarjadi, will recommend policies to the government with the aim of resolving the problems facing the business sector.
Soegeng, who will be assisted by economist Didiek J. Rachbini in his capacity as committee secretary, said the immediate task of the committee would be to hold talks with the Indonesian Bank Restructuring Agency (IBRA), bankers and the International Monetary Fund.
Other members of the committee include Mashud Ali, Subronto Laras, S.R. Soemarso, Frank Taira Supit, Eky Sjahruddin, Abdul Qoyum Tjandranegara, Tobby Mutis and Herman Sudarsono.
Soegeng deplored the slow debt restructuring process under IBRA, saying businesspeople needed quick solutions to allow them and their companies to begin doing business again.
"We will negotiate with IBRA, bankers and the IMF to allow for new loans to businesses," he said.
He added that without new loans most businesses faced the prospect of shutting down their operations within the next two to three months.
Soegeng also said Kadin was trapped by politics because the country's present economic woes were largely blamed on businesspeople.
"The crisis is the mistake of all of us and efforts to solve the debacle should differentiate between economic and political problems," he said during a media conference.
He said political stability, inflation and the exchange rate, all of which effected macroeconomic conditions, were the government's responsibility.
Soegeng blamed the public's poor opinion of businesspeople partly on unbalanced news stories, saying borrowing money from banks was not a crime but an integral part of doing business.
"Not all bad debtors violated the law," Soegeng said, adding that debtors suspected of unlawful practices should be prosecuted.
Kadin's committee will likely be only the first of at least two councils established to assist the government in developing the private sector.
State Secretary Ali Rahman said during a hearing of House Commission I for defense and security, foreign affairs and information last week that President Abdurrahman Wahid planned to establish the National Business Development Council, and had put forward businessman Sofyan Wanandi as its first chairman.
The council would advise the President on microeconomic issues. However, Ali said no one had yet been appointed to the proposed council. (06)