Indonesian Political, Business & Finance News

Kadin urges new cabinet to adopt concrete program

| Source: JP

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)

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