Mahendra new investment boss

JAKARTA. President Susilo Bambang Yudhoyono has appointed Deputy Finance Minister Mahendra Siregar as the new head of the Investment Coordinating Board (BKPM).

He will replace Chatib Basri, whose workload as finance minister since May meant he was no longer able to do both jobs to the best of his ability.

Industry Minister MS Hidayat confirmed Mahendra’s appointment on Saturday, saying the President would announce it in the next couple of days.

“It’s confirmed, Mahendra will get the post,” he said.

Mahendra could not be reached for comment.

Mahendra, 49, has acted as Yudhoyono’s closest aide at G20 (a grouping of the world’s 20 biggest economies) meetings, assisting in negotiation, presentations and dialogue preparations.

Mahendra graduated with a bachelor’s degree in economics from the University of Indonesia and received a master’s degree in economics from Monash University in Australia.

He began his career as a diplomat with the Foreign Ministry in 1986. Former coordinating minister for the economy Aburizal Bakrie appointed him deputy in charge of international economic and financial relations in 2005.

He held the post under former coordinating minister for the economy and current Vice President Boediono until 2009.

The first task for the next BKPM chief will be to maintain the nation’s investment climate so that Indonesia does not lose momentum. Mahendra is expected to overcome obstacles hindering business and endorse a stimulus package to promote investment.

“Mahendra is the right person to steer the agency. He’s a hard worker, and has an extensive international network,” said Indonesian Employers Association (Apindo) chairman Sofjan Wanandi.

“He also has a good record of working with the private sector,” he said.

Economists and executives have said that the new BKPM chief has to be able carry out reforms quickly to create a more conducive business climate amid a potential slowdown in investment growth.

Indonesia recorded historic-high total realized investment of Rp 313.2 trillion (US$32.4 billion) in 2012, due to robust growth and government reforms to enhance the business climate.

The nation booked Rp 93 trillion in realized investment in the first quarter of this year, up 30.6 percent from the corresponding period last year.

However, the government has said investment might slow due to a poor external outlook, forecasting less than Rp 300 trillion in total realized investment this year, based on a 16.3 percent decline in capital-goods imports to $7.7 billion in the first quarter from the same period last year. (nad)

Mahendra Siregar

Birth place/date: Jakarta, Oct. 17, 1962

Education: • Master’s degree in economics from Monash University, Australia (1991)

• Bachelor’s degree in economics from University of Indonesia (1986)

Career:

• Deputy finance minister (2011 - )
• PT Semen Gresik president commissioner (2012 - )
• Deputy trade minister (2009-2011)
• Chairman and CEO of Indonesia Eximbank (2009-2011)
• Deputy for the coordinating economic minister (2005-2009)
• Special staff to the coordinating economic minister (2001-2005)
• PT Rajawali Nusantara president commissioner (2012)
• PT Dirgantara Indonesia commissioner (2003–2008)
• PT Aneka Tambang commissioner (2008–2009)
• Diplomat at the Foreign Ministry (1986-2001)