Mega scorns tight entrepreneurs

Leony Aurora and Fabiola Desy Unidjaja, The Jakarta Post, Jakarta

President Megawati Soekarnoputri chided businesspeople for being spoiled and unwilling to spend their own money to promote their products abroad, instead depending heavily on the government.

She said in a meeting with newly elected officials of the Indonesian Chamber of Commerce and Industry (Kadin) at the State Palace on Wednesday that she always asked Minister of Trade and Industry Rini Soewandi to bring businesspeople along on foreign trips.

"But they always ask 'who's going to pay?'," said Megawati. To avoid suggestions of collusion between her and the entrepreneurs, they are asked to fund the trips themselves, and they always back out, she added.

The constant promotion of Indonesia's products overseas would be useless without the support of the businesspeople to make sure deals materialize, she told the audience, which included new Kadin chairman Mohammad Hidayat, former chairman Aburizal Bakrie and other top entrepreneurs, such as James Riyadi and Ciputra.

Indonesia desperately needs to increase exports to accelerate economic growth. Although last year's exports increased by 5.2 percent to US$61 billion from $57.2 billion in 2002, they contributed only 20 percent to the 4.1 percent growth in the same period. Domestic consumption contributed more than 70 percent to the economy.

Exports in 2004 are expected to increase by 7 percent, mainly due to the improving global economy.

The President also questioned why businesspeople did not make promotions globally, such as through international TV channels and airports.

"(They say) it's the government's duty to promote, (but) what about the entrepreneurs?" she lamented.

Megawati also slammed businesspeople who belittled the government's achievements in stabilizing the country's macro economy, such as lower inflation and increasing foreign exchange reserves.

"Our colleagues seem to forget that behind those criticisms, they have also contributed to our hardships," she said. "They were once even the cause of the problem," she added, referring to huge funds the government had to provide to bailout ailing banks and restructure indebted companies.

Kadin held its fourth national congress and a business forum in Jakarta last week. During the events, which ended last Friday with the appointment of Mohammad Hidayat as the new chairman, many questioned the effectiveness of the improved macro economy, as it has not translated into brisker investment activities.

Members of Kadin also asked for closer and more equal cooperation with the government in setting up the country's economic priorities.

"We don't need to debate and waste time just to clarify the status of the relationship between the private sector and the government," she said.

If the government has to implement a policy and Kadin has a view on the matter, the chamber should present its view as an input, said Megawati.