Ministers differ on economic plans
The Jakarta Post, Jakarta
The newly installed economics ministers are giving mixed signals in their bids to give a boost to the economy, showing their differences in views and approaches to the economy.
Speaking to reporters after the inauguration of the United Indonesia Cabinet on Thursday, chief economics minister Aburizal Bakrie promised to boost the economy through the real sector.
Aburizal said he would seek more incentives for industry players to help boost tax revenue in order to jack up growth.
"For example, we'll try to reduce tax on goods that should no longer be considered luxuries to 25 percent. But this will need coordination and cooperation with the minister of finance," he said.
On the other hand, Minister of Finance Yusuf Anwar said that he would stick to the existing prudence fiscal policy in order to keep the fiscal deficit at check.
Speaking after meeting his predecessor Boediono, Yusuf said that he would spend efficiently but at the same time increase revenue.
"I will continue the efforts made by Pak Boediono to retain fiscal sustainability," he said.
Boediono has been hailed for his efforts to bring fiscal stability to the country.
The new finance minister also said he would pay special attention to foreign debt, and if possible reduce the country's reliance on it.
Minister of Industry Andung Nitimiharja said that he aimed to improve the investment climate so that industries could blossom.
One way to improve the climate is by reviewing regulations that inhibit business, especially the manufacturing sector, he said.
In the trade sector, Minister of Trade Mari E. Pangestu said she would try to open up more export markets for Indonesia through active participation in the World Trade Organization.
She maintained that she would help realize the President's vision of making Indonesia an open economy.
State Minister of State Enterprises Sugiharto said he would continue with the privatization plan, but noted that privatization should not be aimed at raising cash to plug the budget deficit.
He explained that he would maximize the value and performance of state enterprises and get rid of corruption at SOEs or that involving SOEs.
The differing views and approaches to the economy seem to confirm some analysts' concerns over the selection of the economics team.
One particular concern is the selection of the chief economics minister, businessman Aburizal, who is seen as the odd man out in the team.
"He's certainly not an economist and has his own share of problems in the economic downturn and the recession," political commentator and former presidential adviser Wimar Witoelar told Reuters.
Fauzi Ichsan, an economist at Standard Chartered Bank in Jakarta, nevertheless, gave a different, but more pragmatic view.
"If you look at Bakrie as a tycoon, yes he may cause some concern, but I think SBY (Susilo Bambang Yudhoyono) would want to get as much Golkar support as possible," said Ichsan.