Indonesian Political, Business & Finance News

The saga of Billy Joedono

The saga of Billy Joedono

Wednesday's merger of the trade and industry ministries, which resulted in the removal of Trade Minister Satrio Budiardjo (Billy) Joedono from the cabinet, surprised almost everyone. The taboo has been broken: For the first time during his 28-year presidency, President Soeharto removed a cabinet minister halfway through a five-year term.

President Soeharto's decision proves once again that he still has a few tricks up his sleeve. He continues to outsmart pundits with his moves and his choice of people. Recall his appointment of Harmoko as Golkar chairman a few years back.

The question is: Why did the President break the taboo now, and will it be followed by more surprises?

Rumors about merging the trade and industry ministries into a single ministry have circulated for years. Many expected it to happen in 1993, when the new cabinet was to be announced. When it did not, people naturally thought the plan had been dropped. But now that it has, what were President Soeharto's reasons?

The first speculation is that S.B. Joedono did not perform well enough to satisfy the President. Known by many as Mr. Clean for his honesty, personality and dedication, Billy Joedono -- as most of his friends call him -- is low-profile and at times naive. The economics professor is known as something of a loner and a hard worker who keeps his life simple. Before his cabinet appointment he lived in a flat with a 14-inch television. He owns a dusty old car, which he keeps even now and may soon be driving again.

Some of his friends thought Billy did not suit the post of trade minister. As the country's top salesman, the Minister of Trade is expected to be an active promoter of Indonesian exports and a high-spirited politician, which he was not.

Some point to the decline in the growth rate of Indonesian non-oil exports, which dropped from 27.67 percent in 1992 to 12.12 percent in 1994. Although the rate increased to 16 percent in 1995, the trade ministry's lackluster performance is said to be one of the reasons behind country's growing current account deficit of US$6.5 billion in 1995.

Under Billy Joedono, the Department of Trade also lacked initiative and vision, both imperative in an era of liberalized trade. Many in the business community complained of the policy- making rift between the Minister of Trade and the Minister of Industry.

Whatever the case, almost everybody hailed the merger as a timely effort to bring the two ministries under one powerful hand. Or, in Minister/State Secretary Moerdiono's words: "The opportunities offered by the development of the local and world economy can be tapped to the fullest and in a timely manner if we can enhance coordination, integration, synchronization and simplification in the government".

The removal of Billy Joedono, a leading ICMI member and close confidant of ICMI chairman B.J. Habibie, could be a blow to ICMI and an indication that the association is losing the President's favor.

More importantly, the reshuffle illustrates that a five-year cabinet position cannot be taken for granted. Ministers have to perform, deliver and dedicate themselves to their duties, as President Soeharto has called for.

At issue now is whether or not all cabinet ministers will have to give up their non-ministerial jobs. Should this be the case, a lot of heads may soon be rolling.

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