Jakarta – Indonesian President Abdurrahman Wahid must show at least some direction in tackling the country's economic and political woes or face the risk of an impeachment move in August, his economic advisor said Tuesday.
Emil Salim, chairman of the National Economic Council, told a business luncheon here that pressure would mount up against Wahid in the run-up to the People's Consultative Assembly (MPR) annual convention in August.
"Things will be tough but not hopeless, because I think the leadership is pressured to solve these problems," said Salim, a respected Suharto-era economist and minister.
"If by August, President Gus Dur [Wahid's popular name] cannot report to the MPR that there has been some improvement, he will be in trouble," Salim said.
Although all indicators suggested that Indonesia's economy was now on the road to recovery, Salim said the rupiah had fallen because of political issues, including what he called the "unnecessary" sacking of two ministers.
He said Wahid, who is now overseas, must take action on five major problems – ensuring an independent police force, separatism, his own bottom-up style of decision-making, an inexperienced economic team, and problems in the banking sector.
"This August is the test case as to whether Gus Dur will remain or be impeached. He will [have to] fight for his survival," Salim said referring to rumbles by some political party factions that they may call for impeachment.
Though the calls have been muted in the past two weeks, with analysts saying factions would have to show that the president actually broke the law for them to go as far as try for impeachment, a thumbs up from the MPR is considered crucial for Wahid. The MPR elected Wahid as president in October 1999.
Salim suggested that Wahid must at least set out a roadmap to show "in what direction these issues are going to be settled," adding he was burdened with a bureaucracy so unaccustomed to bottom-up democratic government they "had to be reminded" they were the government.
The economist also called on the business community to watch for "positive results" of Jakarta's current talks with the International Monetary Fund – despite the fact that poor investor confidence could still overshadow the meeting.