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JAKARTA. The Indonesian Mining Association (IMI) has expressed regret over the resignation of Hatta Rajasa, saying that the former coordinating economic minister left much work unfinished especially in the energy and mining sectors.
The association’s chairman, Tony Wenas, said on Tuesday that the resignation of Hatta, who led the government’s team to negotiate mining contracts and to set export duties for mineral products, would create more uncertainty in the mining sector.
He also said Hatta’s resignation would further delay a number of mining policies, which should have been announced three months ago, as his replacement would need time to assess the issues.
Similarly, Bob Kamandanu, chairman of the Indonesian Coal Producers Association (APBI), also expressed concern over further uncertainty brought on by Hatta’s resignation. He called on the government not to issue new mining policies until a new government had been established following the July 9 presidential election.
“For now, I think we don’t need any new policies, particularly in the coal sector. We will be in a mess if a decision is issued but then it is revoked by the new government,” Bob said
Indonesia Employers Association (Apindo) chairman Sofjan Wanandi, however, said Hatta’s resignation was unlikely to negatively affect the economy, which has been relatively stable lately, despite a first quarter decline in economic growth.
“His replacement will also be unlikely to make any breakthroughs during such a short tenure, but his successor has to at least maintain the economic growth and precipitate the MP3EI [Master Plan for the Acceleration and Expansion of Indonesian Economic Development] infrastructure projects, which is a brilliant idea but sluggish in progress,” Sofjan said.
Hatta, who is the chairman of the National Mandate Party (PAN), submitted his resignation to President Susilo Bambang Yudhoyono on Tuesday evening after it was revealed Gerindra Party presidential hopeful Prabowo Subianto would officially name Hatta as his running mate.
President Yudhoyono accepted Hatta’s resignation on Tuesday.
Meanwhile, founder of the CT Corp. conglomerate Chairul Tanjung is expected to become the new coordinating economic minister.
“I heard Pak Chairul Tanjung will be named the new coordinating economic minister and I think he is the most suitable to take over the post. His experience as a businessman and chairman of the National Economic Committee [KEN] has given him the ability to understand current issues, be active in Cabinet meetings and interact with economic ministers,” he continued.
Separately, Indonesian Chamber of Commerce and Industry (Kadin) chairman Suryo Bambang Sulisto said he had anticipated Hatta’s resignation given his clear interest in running in the upcoming election, saying that it was the right decision given the possibility of conflicts of interest and schedule.
Suryo said that while Hatta had made some progress in advancing the MP3EI, many projects were sluggish during his tenure. “We hope that his successor will be firm enough to make some bold decisions, such as reducing the costly fuel subsidy that has for years hurt the state budget,” he said. (Anggi M. Lubis and Raras Cahyafitri)
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