Sat, 23 May 1998

Rahardi's appointment concerns businessmen

JAKARTA (JP): Business associations have expressed their doubts over the ability of Rahardi Ramelan as the new minister of industry and trade.

Chairmen of the associations told The Jakarta Post yesterday they were concerned that Rahardi, a former research and technology minister and the chairman of the Agency for Assessment and Application of Technology, was not the best person to take charge of the industry and trade sectors.

"Rahardi comes from a technology and science background, he (President Habibie) should have appointed someone with vast knowledge and experience in trade," said the chairman of the Importers Association of Indonesia, Amirudin Saud.

Amirudin stressed that an industry and trade minister must be skillful in negotiating with the international community, especially during the economic turmoil.

"Our international trade has many problems, especially regarding (export) quotas and letters of credit," he said.

Amirudin said Tanri Abeng, a top executive reappointed as the state minister for the empowerment of state enterprises, would have been a more suitable candidate for the industry and trade post.

Tanri Abeng comes from a strong business background, having worked for large corporations such as the Bakrie Group prior to his first appointment as minister by then president Soeharto in March.

Chairman of the Indonesian Textile Association Bambang Riyadi Soegomo agreed that Rahardi was not suitable for the position.

"Rahardi is a technocrat. A trade person must be able to sell our country because we desperately need the foreign exchange revenue," he said.

Bambang compared Rahardi unfavorably to his predecessor Mohamad "Bob" Hasan, saying Bob knew and understood trade.

The controversial outgoing minister is a timber tycoon and a long-term friend of Soeharto.

Bambang said he hoped Rahardi would not be bound by long bureaucratic procedures during his term as industry and trade minister.

The chairman of the Indonesian Retailers Association, H.J.A. Sinungan, criticized the fact that Rahardi was not a "field person".

"For industry and trade, we need a minister who goes to the field to examine for himself what is making our problems," he said.

"Problems regarding economy, distribution and production must be resolved soon," he added.

The chairman of the Indonesian Footwear Association, Anton Supit, said yesterday that fixing the trade sector would be Rahardi's biggest task.

"We have problems with the World Trade Organization and declining competitiveness, for example. This must be resolved with a good marketing approach," he said. (das)