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Business community rolls out red carpet for Sri Mulyani
Jakarta Post - July 28, 2016
"With Sri Mulyani as finance minister, the country's economy can be managed better," Aburizal, who played a major role in forcing her resignation as finance minister in 2010, said.
Sri Mulyani served as finance minister during the 2005-2010 period under the presidency of Susilo Bambang Yudhoyono. But she was forced to leave the Cabinet after nearly all political parties, including Aburizal's Golkar Party, demanded her resignation, ostensibly because of her alleged involvement in the Bank Century bailout scandal. However, many of them were also angered by her concerted efforts to reform the ministry, especially the taxation directorate general.
Indonesian Employers Association (Apindo) chairman Hariyadi B. Sukamdani recalled how the association and Sri Mulyani worked together very well during the 2008 financial crisis.
"Her ability to translate macroeconomic conditions and communicate them to us in the real sector was better [than that of outgoing minister Bambang]," Hariyadi said.
President Joko "Jokowi" Widodo had repeatedly urged her to return home and last month the President eventually convinced her that the government needed her in reviving the country's poor economic performance. Businesspeople had long been expecting her to lead the strategic ministry, Hariyadi added. The double act of Sri Mulyani and Darmin Nasution, as coordinating economic minister, was what the association had expected.
Hariyadi highlighted Sri Mulyani's previous prudent steps in composing the state budget as beneficial for businesspeople. The current state budget, he said, aimed at too high a tax-revenue target, which hurt businesses.
He expressed the hope the new minister would provide more stimulus and unclog bureaucracy bottlenecks instead of issuing policies that could hamper business growth.
Sri Mulyani said in her speech during a handover ceremony at the ministry's office on Wednesday that she would establish strong coordination among ministries in composing next year's state budget, which is in the deliberation process at the House of Representatives.
This was to ensure the budget could be an instrument for stimulating the country's economy and could improve Indonesia's economic fundamentals. Indonesia's economy grew by 4.79 percent last year, the slowest in six years. It expanded by just 4.92 percent in this year's first quarter, lower than the government and economists' expectations.
"I will look in detail at revenue and government spending," she said. "The state budget must be drafted synchronously and in line with the government's aims of reducing poverty, creating jobs, boosting the economy and lowering wealth discrepancies."
She also emphasized that the government's tax amnesty program was not a standalone objective but was a part of a comprehensive fiscal policy and prudent state budget.
Bank Central Asia (BCA) economist David Sumual applauded Sri Mulyani's cautious measures, saying managing expectations was essential amid the ongoing volatility in the global market.
The British Chamber of Commerce (Britcham) and the Korean Chamber of Commerce and Industry in Indonesia (Kocham) welcomed the move and pinned high hopes on the new finance minister.
"The return of the highly respected Ibu Sri Mulyani and the shift of Pak Tom Lembong are extremely positive," Britcham executive director Chris Wren said.
He added that his office's wish-list for the new team would include better coordination and communication of policy across government.
OCBC Bank economist Wellian Wiranto said the thoughtfully choreographed reshuffle should further cheer the market, calling the new economic team a "dream team".
He warmly welcomed Sri Mulyani, saying her previous market-friendly policy stance, now strengthened with a global aura, would be a big plus for Jokowi's economic reform agenda.
"On top of that, the reshuffle both showcases and further strengthens the President's political foundation. Enough seats were given to new political allies, without sacrificing too much professionalism in the Cabinet," he wrote in a research note.
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