Trade-industry ministry merger hailed
Trade-industry ministry merger hailed
JAKARTA (JP): The government's decision to merge the ministries of industry and trade was lauded by economists and politicians as timely and strategic for the economy.
Others linked the mini-reshuffle of the cabinet to the slackening of Indonesia's exports over the past year, which they attributed to trade minister Satrio Budiardjo Joedono, who has now been dropped out of the cabinet.
They pointed out that while Indonesia's exports have been growing at 14 percent a year, imports are growing by 30 percent.
But Joedono told reporters in his office after the announcement that the merger was a "logical" move in the face of rapid globalization, Antara reported.
He refuted the suggestion that he had not performed well. "This is not about blame," said Joedono, who disclosed that he had been informed of the imminent move a week before.
Still he did not take the decision personally. "Just imagine, two departments merged and you're left with two ministers for one job. One has eight years of experience in the cabinet, the other 2.5 years. Who would you choose?"
The new Minister of Industry and Trade, Tunky Ariwibowo, meanwhile told reporters in his office that with his new expanded portfolio, his chief task will be to bolster exports. "We have to win in global competition," he said.
Economist Suhadi Mangkusuwondo said the merger eliminates the overlaps in tasks of the two ministries that had existed before.
The two ministries were not in consultation with one another and each had been going its own separate ways in selecting the products it wanted to promote for exports, Suhadi said.
He added that the deregulation measures undertaken by the government since the 1980s had virtually removed the role of the Ministry of Trade as a regulator.
Business consultant Rizal Ramli said the merger is timely with the advent of free trade arrangements, first in Southeast Asia by 2003, and later in the Asia Pacific by 2020. "With the merger, I'm confident that Indonesia can bolster its exports."
Business consultant Laksamana Sukardi viewed the merger as a move to streamline the government, given that the Ministry of Trade has become virtually redundant.
"We desperately need to streamline our government. There are many other ministries that could be merged, because they are burdens to the state budget and to the business community," Laksamana said.
"A bureaucracy that does not have work, will look for work," he said, noting the habit of government agencies to impose fees in return for their work. "The result is a high cost economy."
"I praise this decision, but I hope this is only the start... I expect more redundancies to be eliminated," he said.
Yet another consultant, Didik J. Rachbini, said the choice of Tunky over Joedono for the job reflected President Soeharto's evaluation of their performances. "Remember the cement shortage, the falling export figures and suchlike ?" Didik asked.
Political analyst Amir Santoso said mid-term cabinet reshuffles are now no longer a taboo in Indonesia and more changes could come in the future if there is a strategic need for them.
"I welcome this positive development, because the President has shown his pragmatism, and I don't mean this in a negative sense," Amir said.
Another political analyst, Nazaruddin Sjamsuddin said Soeharto broke with tradition by changing the cabinet half way through, and this should serve as a reminder to other members of the cabinet to work even harder. (team)