The central government has recommended the cancellation of about 2,000 regional bylaws on tax and retribution, in an attempt to simplify the management of local economy and to create a
conducive investment climate, says the finance minister.
These bylaws are about 28 percent of a total of 7,200 bylaws evaluated by Finance Ministry until mid July.
"The directorate of financial balance at the Finance Ministry has recommended up to two or three bylaws or draft bylaws each day to be canceled, to be revised or not to be
ratified," Finance Minister Sri Mulyani said during the presentation of the 2007 Local Economic Governance Award held by The Regional Autonomy Watchdog (KPPOD) in Jakarta on Tuesday.
Mulyani said the Finance Ministry has also evaluated about 1,800 draft bylaws on tax and retribution and 66 percent of the draft bylaws or about 1,200 were recommended not to be ratified or be revised.
"Most of these bylaws and draft bylaws are from the regencies and municipalities in North Sumatra, South Sumatra, East Java, Central Java, West Java, South Sulawesi, South Kalimantan and Central Kalimantan," Mulyani said.
Mulyani said the results from the evaluation could be an indicator of the performance of local governments, and along with other indicators it could be used as a consideration for a punishment and reward system in the enforcement of regional autonomy and fiscal decentralization. (**)