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Business welcomes Lutfi's appointment
Gita Wirjawan (left) and Muhammad Lutfi: (Antara/Widodo S
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Gita Wirjawan (left) and Muhammad Lutfi: (Antara/Widodo S. Jusuf) (left) and Muhammad Lutfi: (Antara/Widodo S. Jusuf)
Gita Wirjawan (left) and Muhammad Lutfi: (Antara/Widodo S. Jusuf)
Leading business groups welcomed the appointment of Muhammad Lutfi (right in picture above) as the new trade minister, with renewed hope that the former Indonesian ambassador to Japan could maintain sound trade policies until the end of the current presidential term.
President Susilo Bambang Yudhoyono on Wednesday appointed Lutfi, also the former head of the Investment Coordinating Board (BKPM), to replace Gita Wirjawan, who last month resigned to pursue his presidential bid.
Indonesian Employers' Association (Apindo) deputy chairman Chris Kanter described the new minister as a 'capable figure'.
'He had a good track record as head of the BKPM and is familiar with trade issues, which are important elements that affect investment,' he said, adding that like his predecessor, Lutfi was also in favor of business.
Two of the biggest priorities for the new trade minister would be addressing the food-security issue amid fluctuations in commodity prices and issuing regulations to implement the newly passed trade law, said Chris.
Indonesian Chamber of Commerce and Industry (Kadin) deputy chairman for monetary, fiscal and public policies Hariyadi Sukamdani echoed Chris' sentiments, saying that the new trade minister needed to prioritize the domestic supply of goods, particularly food, to help maintain price stability and tame inflationary pressures.
Another urgent task for Lutfi would be fighting against illegally imported goods, the entry of which had surged in recent years amid the global economic slowdown, causing state losses by way of the absence of taxes and hurting domestic industry, Hariyadi added.
'The two jobs are important. The new trade minister cannot make other strategic decisions because his tenure is very short,' he said.
Lutfi, 44, late last year ended his duty as the Indonesian ambassador to Japan, which he began in 2010. He earlier served as chief of the BKPM from 2005 until 2009.
Speaking after the announcement, Lutfi said that he would focus on improving the distribution system to stabilize prices as well as to manage inflation and boost exports, two of three instructions from the President, who is set to inaugurate him on Friday.
Another focus will be paying special attention to 'effective diplomacy', particularly pertaining to environmentally sensitive commodities like palm oil, a source of international concerns due to massive deforestation caused by the expansion of plantations.
Despite the eight months left for him in the post, Lutfi vowed to do his best in carrying out his new duties. 'It's like playing soccer; even during injury time, the team must do its best,' Lutfi said.
Indonesia's consumer prices surged by 8.22 percent in January on the back of food-supply disruptions caused by adverse weather, the Central Statistics Agency (BPS) said recently. Inflation would likely surge this month on continuing bad weather, analysts have said.
Indonesia is bracing for stagnant exports this year on continuing weak overseas demand caused by a sluggish recovery in the global economy. The nation's total exports will reach around US$180 billion in 2014, almost similar to last year's $182.57 billion, the government has said.
