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Coalition break-up worries businesses
As the coalition between the ruling Democratic Party (PD) and the Golkar Party breaks up, the business community is concerned about looming political uncertainty, which could hold-up policy issues needed to quickly to cushion the impact of the global economic crisis
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As the coalition between the ruling Democratic Party (PD) and the Golkar Party breaks up, the business community is concerned about looming political uncertainty, which could hold-up policy issues needed to quickly to cushion the impact of the global economic crisis.
Due to the uncertainty, powerful lobbying groups including the Indonesian Chamber of Commerce and Industry (Kadin) and the Indonesian Employers’ Association (Apindo) said Thursday businessmen were extremely cautious.
“The business community is in wait-and-see mode now. We are deeply concerned over the issue. We will remain watchful and hope the political ploy will remain proportional,” Kadin chairman M.S. Hidayat said.
Kadin and Apindo urged PD founder, President Susilo Bambang Yudhoyono, and Golkar chairman, Vice President Jusuf Kalla, to set aside personal egos and uphold their pledge to act professionally until their term ends in October.
Their commitment is needed to keep the House of Representatives coalition so that it can pass several key bills, including approving a stimulus mechanism for infrastructure, and the economic crisis bill.
With the coalition break-up, the government is likely to have a harder time passing the much-needed policies with current lawmakers, whose term will expire in September.
If re-elected as president, Yudho-yono will need to forge an alliance with Golkar and other parties to help secure more than 51 percent of votes in the House. Failing to do so will paralyse the possible Yudhoyono administrations ability to swiftly pass economic policies and maintain political stability.
Apindo chairman Sofjan Wanandi said Yudhoyono and Kalla should not ruin the current favorable momentum to keep Southeast Asia's largest economy relatively immune to the global downturn.
"We are facing a grave external threat here. There should be a concerted effort from political parties to stay united in order not to ruin current attempts to fix and build the economy," he said.
He urged Yudhoyono and Kalla not to get distracted from directing their ministers from keeping the economic wheel turning, by accelerating government spending for infrastructure projects.
Key economic bills under
deliberation until september
1. Economic crisis bill (financial safety net)
2. Value-added tax and luxury tax bill
3. Possible revision of 2009 state budget law
4. 2010 state budget bill
5. Public service bill
6. Bureaucracy and governance bill
