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'Leadership change crucial for economy'

Source
Straits Times - May 22, 2001

Robert Go, Jakarta – A change of leadership in Jakarta is crucial to Indonesia's economic recovery, say business leaders and analysts.

After 19 months in which the economy has spiralled downwards – from recovering to moving towards another potential crisis – many businessmen and ordinary Indonesians yearn for a more consistent government.

Businessman Sofjan Wanandi told The Straits Times: "The business community wants and will support a government that can be trusted and can create stability. Indonesia needs professionals to run the show. Indonesia can't overcome the crisis and we face increasingly difficult challenges. We need this political instability to end."

Economist M. Sadli said: "Even at the cost of some freedoms or democracy, the business community prefers stability and a strong government. Stability will bring new foreign investments and add to the confidence levels of domestic businessmen."

A tycoon with interests in the transportation and export-and-import sectors said: "Businesses can't afford much more of this uncertainty. If allowed to persist, the political paralysis will flush the economy down the tubes. What we need is a strong government that can lead the way, instead of creating chaos."

The business community's sentiments coincide with a new poll of nearly 1,000 Indonesians who rated the leadership of President Abdurrahman Wahid as poor, even when compared with that of former President Suharto, who is accused of fostering endemic corruption.

The poll was sponsored by parties alleged to be close to the Suharto family, but several independent analysts have used it to illustrate how badly the public now regards Mr Abdurrahman's presidency. And while some here may feel nostalgic for a Suharto-style government, others insist that stability and a pro-business atmosphere could exist even under a reform-era government.

Mr Amir Sambodo, an adviser to Junior Minister for Economic Restructuring Cacuk Sudarijanto, said: "We don't want to go back to Suharto. That would be a setback to democracy. But people are fed up with this government and look forward to a new administration."

But Mr David Chang, head of Vickers Ballas-Indonesia, cautioned: "Military involvement or a confrontational shift of power would not be well received by foreign investors and could pose additional negative effects on recovery."

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