The Jakarta Post (Tuesday, May 19, 2009)
Presidential candidate Jusuf Kalla is selling a line on economic nationalism to top business people, despite his family's close business ties with Japan.
In a dialogue forum organized by the country's powerful business lobby, the Indonesian had not only fallen victim to unfair business practices by overseas companies, but was also becoming too dependent on foreign entities.
Kalla is the first presidential candidate attending the economic dialogue, which will feature incumbent President Susilo Bambang Yudhoyono on Wednesday. Presidential candidate Megawati Soekarnoputri has been at odds with Kadin since 2003, and has yet to confirm attendance.
While ensuring listeners that he was not anti-foreigner, Kalla strongly criticized foreign companies for taking excessive profits from the country, and argued that free trade was basically unfair to Indonesia.
He slammed the International Monetary Fund (IMF), which he said was trying to "destroy" the country by requesting that all commodities be available for export. "What we need is investment that is honest, and fair trade which is not free trade", said Kalla.
They (the foreign companies and entities) are not necessarily plundering (the country's resources), it is us who give them (the resources) due to our helpless condition".
He pledged that if elected as president he would seek fair business deals with foreign companies, investors and multilateral agencies.
"I'm not saying that I want to prevent outsiders from coming to Indonesia. Indonesia is an open country, but we need investment which are more productive and with more benefits to us", he said.
However, it remains to be seen how fa Kalla's nationalist line might be nailed down in detail.
His family's business empire has been primarily nurtured by Japanese automotive kingpin Toyoto Motor Corp., since back in the 1970s, when he was the sole distributor of Toyota for the eastern part of indonesia.
Kalla also helped his brother-in-law Aksa Mahmud to set up a dealership for Toyota's rival, Mitsubishi competing for the same market.
Since taking office as vice president, Kalla often visited Japan to "socialize" with Toyota executives.
He invited an influx of Chinese contractors, suppliers and lenders fot the construction of the government-initiated 10,000.- megawatt power program.
During the dialogue, Kalla criticized how easily Indonesia had taken up foreign loans that had eventually mounted up to cost the country between US$ 6 billion and $ 7 billion in interest payment annually.
But it was during his tenure that Indonesia inked an economic partnership agreement (EPA), a kind of free trade deal, with Japan which analysts believe could mean higher costs to the country than benefits.
Under the EPA, the country would remain heavily dependent on Japan in the automotive sector and in heavy machinery.
Kalla is also aware that the recent free trade agreements between the association of southeast Asian Nation (ASEAN) and Australia and New Zealand potentially brough more disadvantages than profits, especially to the country's cattle farmers and dairy industry.
While keeping this problems to one side, Kalla continued his strong criticism on the country's heavy dependence on foreign products.
"to be a self reliant country means we are not addicted to support from foreign countries like loans or financial assistance", Kalla said before 350 businessmen.
"We can do everything for our selves, by our own power, our own know-how, and our own finance. Indonesia is a rich contry, we have to use everything we can to build this country for ourselves."
He said there were three obstacles to Indonesia competing with foreign contries; the high cost of funds, lack of infrastructure and insufficient electric power capacity. If this obstacles could be addressed then Kalla is upbeat the country could easily grow at 8 percent annually by 2011.
Kalla answered about 15 questions from Kadin members, mostly about free trade, capital markets, the real economic sector, banking and his strategy for economic crisis.
However, none of the businessmen riased questions about conflict of interest between public oficials with their family businesses, nor about governance or accountability.
Sofyan Wanadi, the chairman of the Indonesia Employers Association (Apindo), said Kalla's target to reach 8 percent of economic growth was acceptable.
During the Suharto regime, Indonesia recorded 7 to 8 percent economic growth. We also can do that now", Sofjan said.
Kadin chairman M.S. Hidayat did not attend the dialogue as he was taken ill. (naf)
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