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| Photo from: Jakarta Globe |
In his presentation nine years ago in HK, I remember that two of his slides showed a quote from Adam Smith,
[The rich] consume little more than the poor… They are led by an invisible hand … and thus without intending it, without knowing it, advance the interest of the society, and afford means to the multiplication of the species.
I liked his presentation. He is a soft spoken yet highly articulate and intelligent guy. He got his PhD Econ from the Australia National University (ANU). During the EFN Asia conference in Kuala Lumpur in 2005, he was supposed to come too but he did not arrive. He was at that time, the Director of the Institute for Economic and Social Research Faculty, University of Indonesia.
Here are two news reports today from the Jakarta Globe.
Editorial: Free-Market Thinker to Lead Finance
By Jakarta Globe on 9:23 am May 21, 2013.http://www.thejakartaglobe.com/opinion/editorial-free-market-thinker-to-lead-finance/
The appointment of M. Chatib Basri as the fourth finance
minister under President Susilo Bambang Yudhoyono is a welcome move. The new
minister has the requisite experience, but more importantly he understands the
needs of the business community.
As he settles unto his new post after a successful stint
at the Investment Coordinating Board (BKPM), Chatib will have to tackle several
key issues immediately. These include keeping the budget deficit from
exploding, dealing with the fuel subsidy issue and boosting tax collection.
These are not easy challenges, but Chatib has the
experience, skills set and economic knowledge to make the right decisions.
The most pressing challenge will be to deal with
ever-rising fuel subsidies. It is clear that the state cannot afford to fund
fuel subsidies without causing serious damage to the state budget and
macroeconomic stability. But managing the political implications of raising
fuel prices will require skill and a significant amount of socialization.
On this score, his apolitical stance will stand him in
good stead. Political parties cannot accuse him of politicking or favoring any
side. But he will have to work hard to get legislation on his side.
Chatib is also probably the best person to improve the
investment climate given his time at BKPM, where he cut red tape significantly.
He will have to continue these efforts at the Finance Ministry. If he is able
to streamline bureaucracy, he will have made a major contribution to improving
both the investment as well as the business climate in the country.
A soft-spoken man, Chatib is nonetheless a forceful
economic thinker. He is a free-market advocate who supports free enterprise,
which is critical in ensuring that Indonesia remains an open economy. His
appointment is good for the country and the economy.
