Siswono to focus on SMEs, agroindustry

Zakki P. Hakim, Jakarta

Siswono Yudohusodo, the running mate of presidential candidate Amien Rais, said on Wednesday "their" administration would focus on the development of small and medium enterprises (SMEs), should they emerge the winner in July's polls.

Siswono, who is also the chairman of the National Indonesian Farmers Organization (HKTI), said the empowerment of SMEs was a sustainable solution to the lingering economic crisis.

Under the pair's administration, SMEs would get more low- interest credits to support their business, said Siswono.

According to him, currently, there were some 400,000 "micro businesses" in the country.

"If each of the 400,000 businesses recruited only one more employee, we would reduce the unemployment figure by 400,000," he said, without detailing his definition of micro-business.

He also said his administration would push for the provision of more housing loans for the public.

"Low-interest housing loans would increase the demand for housing, especially from the middle- to lower-class bracket,

"Increasing the demand for housing would in turn stimulate the birth of more firms, such as a simple ones producing bricks and tiles. This would eventually create more job opportunities," he said.

Siswono served in several cabinets of former president Soeharto, including as ministers in charge of housing.

In particular, Siswono said the pair's administration would focus on the development of SMEs in the agriculture sector, in view of the great potential Indonesia had in that sector.

He said Indonesia is the world's top producer of palm oil, coffee, tea, rubber, cocoa and other commodities, but most farmers live in poverty.

Furthermore, he said, the country has not gained maximum benefit from the export of its commodities as it does not process most of them, which would add to their export value.

"Indonesia should not let other countries benefit from its incompetence in managing value-added activities regarding local agricultural products," he said.

When asked about his view on current issues, such as the privatization of state enterprises and the liberalization of the domestic market, Siswono declined to answer. He said he had not discussed the issues with Amien.

He also refused to mention possible candidates for the economic team of his future cabinet, but promised that the pair would fill the positions with "competent" people.

Regarding the nation's debt, Siswono said it was necessary to put a stop to the government's tendency to secure more and more foreign loans, and to perceive getting a new loan as an achievement.

"Undeniably, we still need loans in the coming years, but we have to reduce the amount we take on every year. We have to reduce our debt," he said.