New economics team
New economics team
The economics team of any new cabinet has always commanded
much more attention than other portfolio because the performance
of economics ministers directly influences the living conditions
of the people. The role of the economics team of the seventh
development cabinet which President Soeharto installed yesterday
is even more crucial now because of the worst economic crisis the
nation has ever faced.
It would indeed be premature and unfair to make any judgment
on the new economics team, which is headed by Ginandjar
Kartasasmita as the coordinating minister for economy, finance
and industry and concurrently chairman of the National
Development Planning Board with its core members comprising Fuad
Bawazier as finance minister, Sjahril Sabirin as governor of Bank
Indonesia, Mohamad "Bob" Hasan as industry and trade minister and
Kuntoro Mangkusubroto as minister of mines and energy.
Moreover, since the ministers are merely assistants to and are
accountable only to the President, those asked to join the
cabinet should be the ones with total loyalty to and trusted by
Soeharto. How could the President have confidence in his
government if he was assisted by aides with whom he was not
comfortable with?
Nonetheless, since what the nation is now grappling with is
not only an economic crisis but also a crisis of public
confidence in the government, great care should have been taken
in regard to the public's perception of the personalities
appointed to the cabinet. The main reasons for the crisis of
confidence -- perceived widespread corruption, crony capitalism
and nepotism -- should have been taken into serious account in
recruitments for the new cabinet.
Perception, which is a core element of confidence, is formed
not by upcoming events or future performance, but by past
experiences and, in the case of the appointed ministers, their
characters and personalities as they have been widely perceived
so far.
President Soeharto stated in his inauguration speech for his
seventh five-year term last week that he had fully and broad-
mindedly listened to all the subtle, veiled, strong and blunt
criticism. One of the most popular demands expressed inside and
outside the General Session of the People's Consultative Assembly
in the first two weeks of this month called for an honest, clean
and efficient government and for the stoppage of corruption,
crony capitalism and nepotism.
But seen from the urgency of restoring public confidence in
the government, one member of the economics team seems
questionable. Mohamad "Bob" Hasan has so far been perceived as
the most complete embodiment of crony capitalism and as having
the most aggressive rent-seeking mentality. Only the President
knows the reason as to why he chose Bob Hasan for so vital a
portfolio.
Notwithstanding the possibility that Bob Hasan might
eventually grow into his new position and tasks, his perceived
personality has somewhat damaged the cabinet in the eyes of the
public, even though other members of the economics team are all
highly respected, competent, career bureaucrats. It is a great
pity that the new economics team already has an image problem
even before it starts working. This will not help the process of
restoring public confidence in the government, which is quite
vital to stabilizing the rupiah, for without a stable rupiah
there can be no dependable economic activities. The efficacy of
whatever the government does will depend mainly on public
confidence. This is especially so as regards to the currency
market which is highly sensitive to information and perception.
Whether we like or not, while the country is indebted to the
International Monetary Fund and is under its three-year rescue
package, the government will be constantly under the scrutiny of
international institutions and the global market. The new
cabinet, especially its economics team, is therefore required to
start in a very big way in order to jump-start the process of
restoring public confidence. It has a very long way to go to
convince the nation and the international market of its
credibility and competence.