Proposed economic council meets with skeptical response

Proposed economic council meets with skeptical response

Dadan Wijaksana, The Jakarta Post, Jakarta

The planned establishment of the National Economic Council (NEC),
a powerful U.S.-style advisory body that would directly report
and be responsible to the president, raises more questions than
answers, according to an economist.

President-in-waiting Susilo Bambang Yudhoyono ("SBY"), who
holds an unassailable lead over incumbent President Megawati
Soekarnoputri in the vote count, has floated the idea to set up
the independent advisory body, separate from the Cabinet and
consisting of experts and industry players, to provide input and
analysis to the president on economic affairs.

A similar body to handle security affairs, called the National
Security Council (NSC), would also be established.

However, while some welcomed the concept, doubters said the
new body would only create new layers of bureaucracy and could
even become another source of confusion.

"I do not see the urgency of such a council. We need to know
its purpose and what functions this agency will serve. As a
think-tank body? Over what areas? Let's say on monetary affairs,
we already have a bunch of researchers in Bank Indonesia," Bank
Mandiri chief economist Martin Panggabean said.

"On fiscal policy, we already have a research unit at the
Ministry of Finance. Or on economic development -- we have
Bappenas," Martin said, referring to the National Development
Planning Agency.

"So, what role will this council play actually? Will the
existing agencies be scrapped as a result? To me, the plan raises
more questions than answers," he said.

Martin cited the ineffectiveness of similar councils under the
administration of president Abdurrahman "Gus Dur" Wahid as an
example of how the lack of clarity in job descriptions had made
such agencies impotent and nothing more than a burden to the
state.

In mid 2001, Gus Dur set up agencies similar to the NEC and
SCC, which proved of little use, he said.

"Hopefully, it's not Susilo-(Jusuf) Kalla's way of
accommodating and giving positions to groups of people who have
supported the pair in the campaign," he said.

Ali Muchtar, a director of Susilo's campaign team who is
familiar with the concept, brushed aside such concerns.

"There would not be an overlap of authority, be it with the
economic ministers nor existing agencies. What SBY wants, from
what I know, are for these councils to serve as a 'second
cabinet' which will back up the government's work, providing
inputs and analysis on economic affairs."

"This second cabinet will comprise of a small team of members;
economic experts and industry players. The NEC members will be
small in number, so that they can be more focused, dynamic and
responsive to the latest economic developments," Ali told The
Jakarta Post.

He said more details would be available after Oct. 5.