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.