A prominent economist who turned down the directorship of the Harvard Institute for International Development (HIID) two years ago after loud student and faculty opposition said yesterday he does not regret his decision because he is still able to collaborate periodically with Harvard scholars on a variety of projects.

Arnold C. Herberger, professor at the University of Chicago, drew widespread criticism at Harvard when he was offered the post in 1980, because of his reputation as a close advisor to the ruling juntas of several South American governments, notably Chile. But he said recently that the affair "has left no permanent scars on [his] relationship" what Harvard.

During the last 10 months Harberger has worked on an HIID research project, which may be used to reform the tax structure of Indonesia. The study is not yet complete, but Harberger presented some of his findings about the Indonesian political economy at an HIID seminar in Coolidge Hall yesterday.

He said the study in Indonesia has been very important both for that country and for the Institute. Harbarger expects to continue working on the project until funding runs out, and then he may begin independent work in Indonesia.

Harbarger said the work on Indonesia has given him "the pleasure of colleague interaction-without the administrative hassles" which would have come with the HIID directorship.

In the last two years, Harberger has continued to work and lecture in Chile as well as meet frequently with many of his former students who currently have positions in the Chilean government, although he said he does not directly advise the government.

Harberger said that during his work there his "interpretation of the Chilean reality has changed." He refused to elaborate on what that reality was but said it would be detailed in a forthcoming book on the Chilean political economy on which he did some work with HIID fellows. "I learned a great deal in the process," he added.