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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