P

resident Susilo Bambang Yudhoyono will likely soon appoint a new head of the Investment Coordinating Board (BKPM) to replace Chatib Basri, who started as finance minister on Tuesday.

Coordinating Economic Minister Hatta Rajasa said that the President had a short list of candidates to head the BKPM. Declining to mention names, Hatta said that Chatib'€™s replacement would be an '€œexecutive'€ or a '€œprofessional'€.

The first task for the next BKPM chief would be to maintain the nation'€™s investment climate so that Indonesia would not lose momentum, could overcome obstacles hindering business and endorse a stimulus package to promote investment, Hatta told reporters after Chatib'€™s inauguration.

Chatib, who had led the BKPM since Gita Wirjawan left to become trade minister in 2011, was previously deputy chairman of National Economic Commission (KEN).

Industry Minister MS Hidayat said that the candidates under consideration to succeed Chatib came from different backgrounds and included an economist, a bureaucrat and a executive, all of whom were familiar with investment and economic issues.

While the government has declined to name the candidates, sources who knew about the matter said that Hariyanto Sukamdani and Chris Kanter, who both hold significant positions in the Indonesian Chambers of Commerce and Industry (Kadin) and the Indonesian Employers Association (Apindo), were under consideration.

Also said to be on the short list were PT Pertamina president director Karen Agustiawan and Deputy Finance Minister Mahendra Siregar.

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

Indonesia booked record-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 also 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, estimating that there would be Rp 390.2 trillion in total realized investment this year, based on a 16.3 percent decline in capital good imports to $7.7 billion in the first quarter from the same period last year.

Asian Development Bank deputy country director Edimon Ginting said that it was important for the new BKPM chief to resolve the obstacles hindering investment in Indonesia and to reduce the red tape slowing infrastructure projects run under public-private partnerships schemes.

Contacted separately, Indonesian Institute of Sciences (LIPI) economist Latif Adam echoed Edimon, saying: '€œThe ideal figure should be able to [...] design evidence-based policies to cope with current challenges.'€

Apindo chairman Sofjan Wanandi said that the new chief must maintain excellent relations with the government in wooing investors, particularly foreign ones.