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)