Ministers differ on economic plans
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.