Property mogul named Kadin chief
Property mogul named Kadin chief
Fitri Wulandari, The Jakarta Post, Jakarta
Property magnate Mohammad S. Hidayat was elected late on Friday
as the new chairman of the Indonesian Chamber of Commerce and
Industry (Kadin), as the business lobby group struggles to bridge
a communication gap with the government and resolve problems
faced by the business sector.
Hidayat won the chairmanship with 64 votes on the last day of
Kadin's two-day national convention, attended by some 90 Kadin
regional offices and 18 business associations.
Rivals Sharif C. Sutardjo won only 30 votes, while Suryo B.
Sulisto garnered a mere 14 votes.
Hidayat, who is also Golkar Party treasurer, succeeds Aburizal
Bakrie, whose term has come to an end. Aburizal is competing with
other politicians to represent Golkar in the presidential
election.
Hidayat said he would resign from his position at Golkar at
the upcoming party congress in order to commit to his four-year
Kadin chairmanship.
Speaking at a press conference, he said Kadin's immediate
priority would be to work closely with the government in
determining economic policies to help revive the business sector.
He explained that, despite the hard-gained macroeconomic
stability, investments in the corporate sector remained slow.
"Macroeconomic stability should be a catalyst for a revival in
the micro sector," he said.
Over the past year, the rupiah has stabilized, bank interest
rates have fallen to record lows and inflation has been brought
under control. However, these gains have not translated into
brisker investment activities, due to continuing problems such as
lack of security, poor implementation of regional autonomy, labor
disputes and the reluctance of the banking sector to resume
corporate lending.
Hidayat said an increase in investment activities by domestic
businesses was crucial in accelerating economic growth and
creating more jobs, as the country could not rely on foreign
investment due to election year uncertainties.
"We can actually push domestic investment, because we have the
financing and human resources," he said.
A number of business leaders said earlier that it was crucial
for the new Kadin executives to consolidate the institution to
boost its bargaining power with the government in determining
economic and business policies.
Meanwhile, Kadin issued a communique on an action plan to
revive the corporate sector, excerpts of which follow:
- Resumption of banking intermediary role
- Place limit on minimum wage increases
- Minimize labor disputes
- Eliminate red tape
- Transfer abandoned forest concessions to qualified companies,
particularly in agriculture, fishery and mining sectors
- Restructure forestry-based industries
- Establish Batam as VAT-free trade area; apply similar status to
other industrial zones
- Promote good corporate governance.