The New Ministers with Old Challenges

The boring reshuffle ‘party’ is over now. Some ministers stay, but some go. Some new ministers spark a glimmer of hope, but some remain questionable.

To be precise, Indonesians can pin much hope from Dahlan Iskan as State-Owned Enterprises Minister. But Mari Pangestu as Tourism Minister and Jero Wacik as Energy and Mineral Minister, in my opinion, don’t fit the bill.

Based on their track record, Dahlan Iskan made good as PLN chief. He seems to be very rational person, steeps in problems and knows aptly what to do. His health condition aside, he deserves presidency. Conversely, no outstanding initiatives have been borne by Mari Pangestu and Jero Wacik in their previous posts.

Why do SOEs, Tourism and Energy and Mineral Resources matter? Why should we focus on those?

To be effective, any government should do 3 things simultaneously, namely: raise revenues, cut spending and invest for the future. And SOE, Tourism and Energy and Mineral Resources are money creator for both government and people.

Let’s take a look, what the government has done in these sectors in accessible language.

SOEs

First off, do you know cigarette tax excise contributes more money compared to dividends of all SOEs combined?

Thanks to the smokers, the government’s revenue stemming from cigarette tax excise is expected to the tune of Rp 68.1 trillion in 2011. While the dividends of all SOEs combined is only Rp. 29.5 trillion in 2010.

Despite in total SOEs targeted to contribute Rp. 160 trillion in 2011 inclusive of taxes and dividends. And I admit that I have no data of total contribution of cigarette industries to government’s revenue excluding tax excise. But see what Petronas, a Malaysia’s SOE can do for its country. In 2009 Petronas made payment to Federal Government inclusive of taxes, royalty, export duty and dividends as much as RM 67.8 billion (Rp. 191 trillion).

Dahlan Iskan must have understood his challenges and prove his business acumen.

Tourism

Do you know in 1998 Malaysia drew only 5.5 million tourists, but then surged to 24.6 million in 2010? In contrast, do you know in 2004 Indonesia drew only 5.3 million tourists and grew at a snail’s pace to 7 millions in 2010?

What’s wrong with us? Given more cultures, more coasts, more mountains, more lakes, more water falls, Indonesia doesn’t deserve less tourists than Malaysia.

This is the challenge for Mari Pangestu. Given her previous performance, I cast doubt she can make miracle in our tourism industry.

Energy and Mineral Resources

We are told for many times and for long time that Indonesia is rich with natural resources: gold, coal, tin, iron, copper, aluminum, nickel, etc. You might think that Indonesia is natural resources-fueled economy. It is absolutely not. Do you know, the revenue of this sector is ‘only’ Rp. 15.4 trillion or 1.6% contribution of government budget? That’s right, it’s only a fraction. Please refer again to cigarette industries’ contribution of Rp. 68.1 trillion. This clearly confirms that Indonesia isn’t the boss of its own natural wealth. The foreigners control our natural resources and take the most benefit for their own.

The next uphill task is none other than removing Oil and Gas law which allegedly driven by foreign agenda. It is the very law which cripples Pertamina, gives less revenue and gives away control, discourages investment and in the process, benefits the foreigners.

And, frankly speaking, that’s nearly mission impossible for Jero to be a hero.

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