New faces in the cabinet vow to ring the changes
New faces in the cabinet vow to ring the changes
JAKARTA (JP): Newly appointed cabinet members charged with
rescuing the nation from economic turmoil vowed yesterday to
usher in a new era.
State Minister of Investment/Chairman of the Investment
Coordinating Board Hamzah Haz, one of the new faces, said
improving investor confidence was a top priority.
"What is critical now is not only solving the economic
problems but reviving investor confidence deteriorated by the
recent traumatic (political) development," he told reporters
yesterday.
He said the recent rioting, looting, arson and fears of
possible bloodshed had sent foreign investors away.
Hamzah, a member of the United Development Party (PPP), is one
of three cabinet members picked from political parties. Under
Soeharto's rule, the cabinet only included people from the
military, business circles, and the ruling Golkar grouping.
Other important priorities include improving business
efficiency because only if there is adeptness will foreign
investors return to Indonesia, he said.
Minister of Forestry and Plantations Muslimin Nasution,
another new face in the so-called Development Reform Cabinet said
that his main focus was how to provide more employment, basic
commodities and foreign exchange within the forestry and
plantation sector.
"The sector provides an export opportunity because of its
comparative advantage," he said, adding that he would welcome
foreign investment as long as it could benefit farmers and low-
income households.
Muslimin, who replaced Sumahadi, said that he would give
priority to realigning the palm oil business as it was linked to
the availability of cooking oil, which is a basic commodity.
New chairman of the National Development Planning Board
(Bappenas) Boediono declined to outline his plans, saying only
that he would strive to ease the economic hardships especially
for low-income families.
"Why should I reject the cabinet post. Someone has to solve
the economic hardships of the people," the former director of
Bank Indonesia told reporters.
Bappenas was previously held by Ginandjar Kartasasmita, who is
the coordinating minister for economy, finance and industry.
Ginandjar was rumored to have played a major role in shaping
Habibie's cabinet lineup.
Newly appointed food minister AM Saefuddin, who also comes
from PPP, proposed yesterday that cabinet members opt for Kijang
vans instead of Volvo sedans for their official cars to save
state money.
"I think the public will agree with this idea."
The money saved through such belt-tightening measures could
top up government funds for food subsidies amid the monetary
crisis, he said.
"The government's financial resources have been depleted
during the crisis and it expects only limited revenues in the
future."
Bank Indonesia Governor Sjahril Sabirin said yesterday a new
governor was not announced along with the cabinet lineup to
demonstrate the government's commitment to creating a more
independent central bank.
He, however, declined to comment on whether he would continue
to hold the position of governor, saying that he had yet to meet
with the new President.
According to analysts, the new Bank Indonesia governor would
be appointed by the House of Representatives.
Sjahril said the decision to free up the central bank was
indicated in a recent decree issued by former president Soeharto.
Under an agreement with the IMF last month, Soeharto agreed to
sweeping economic reforms including creating an independent Bank
Indonesia based on a new central bank law in exchange for a
multibillion dollar bailout package to help lift the country out
of its worst economic crisis in three decades. (aly/jsk)