Kadin urges new cabinet to adopt concrete program

JAKARTA (JP): The Indonesian Chamber of Commerce and Industry (Kadin) urged new President B.J Habibie Saturday to adopt a concrete economic program to lift the country out of its economic crisis.

Kadin chairman Aburizal Bakrie said that the program should have a realistic target and clear timetable to provide certainty to the business community.

Kadin also called on public to give the new government a chance to implement the reform program and solve the country's economic problem, Aburizal said in a statement.

"Kadin supports President Habibie and his reform cabinet. Let's allow the new government to implement its reform program," Aburizal said.

Aburizal also urged the government to create political and social stability as soon as possible to foster an environment for business.

"A stable political and social condition is necessary to create a conducive climate to redevelop business and investment," Aburizal said.

The country's worst economic crisis in decades sparked student protests which developed into widespread opposition of former president Soeharto, who quit last Thursday after 32 years in power.

Aburizal said Kadin also welcomed the new Cabinet's lineup and praised the exclusion of a Bank Indonesia governor, saying that it would make "the central bank more independent and free from the government's interference".

"Kadin, specifically, will forge a good cooperation with the new minister of industry and trade, specially in determining priorities in boosting Indonesia's non-oil exports," Aburizal said.

Kadin also urged the government, especially its economic team, to improve cooperation with international financial institutions, including the International Monetary Fund (IMF), the World Bank and the Asian Development Bank (ADB) to ensure there would be no delay in the disbursement of the loan pledged by the institutions.

The approach was necessary to enable Indonesia receive the pledged loans according to original schedules, he said.

"President Habibie and his cabinet have to prove that they are committed to their reform commitment and consistently implement all programs agreed with the foreign parties, specifically in implementing economic reform programs agreed upon with the IMF and other international institutions," Aburizal said.

IMF said last week it might delay its credit disbursement to Indonesia -- planned for June 4 -- considering the country's political uncertainty and massive unrest.

Aburizal said the government should give priorities for the development of small and medium-scale companies and cooperatives in its economic program by giving them a more important role in both industrial and financial sectors.

Kadin also appealed to the government to narrow the social gap between the indigenous people and Chinese-Indonesians.

Indonesians of Chinese descent account for about five million of the country's over 200 million people. The small community, which controls most of the country's commerce and wealth, has often become a target of social unrest.

"By reducing the gap, the government will preclude the country from riots and looting," Aburizal said. (gis)