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.