A business solution<\/p>\n
The dialogs on Monday between the two presidential candidates
\n-- Susilo Bambang Yudhoyono and incumbent president, Megawati
\nSoekarnoputri -- and national and foreign business leaders are
\ngreatly encouraging, as regards the future management of our
\neconomic problems.<\/p>\n
We were impressed by Susilo's eloquence in demonstrating his
\ncomprehension of the multi-dimensional crisis that we have been
\nfacing since early 1998, and the commonsensical manner in which
\nhe presented his policy recommendations.<\/p>\n
He showed full understanding of the vital importance of basic
\ninfrastructure, legal certainty, the sanctity of contracts, the
\ncrucial role of the dispute settlement mechanism, and the role of
\ntax as the main source of state revenue and as an instrument to
\nenhance economic justice.<\/p>\n
Susilo seems fully aware of the severe limitations of the
\ngovernment's budget, and consequently of the vital role of the
\nprivate sector as a primary source of investment, without which,
\nthe economy would remain stagnant and no new jobs would be
\ncreated.<\/p>\n
It is precisely because of the similarity of their economic
\nstrategies and policies that investors and businesspeople are
\nreassured that, regardless of which candidate is elected, the
\nnext government will continue to emphasize the strengthening of
\nmacroeconomic stability as a basic foundation to spur sound
\ngrowth in microeconomic sectors.<\/p>\n
In fact, given the severe limitations of the state budget, at
\nleast until 2009, since almost one third of its revenue will have
\nto go on serving domestic and foreign debt and subsidies on fuel
\nand other poverty-alleviation programs, the next government has
\nno other alternative but to focus on reinvigorating domestic and
\nforeign investment.<\/p>\n
It is investment that creates jobs and provides wages, which
\nin turn generates purchasing power, fuels consumer demand to keep
\nfactories in production, and generates tax revenue to fund the
\ngovernment, public services and utilities.<\/p>\n
However, investors require the very things our presidential
\ncandidates outlined at the business dialogs: Legal certainty,
\nadequate infrastructure and good governance, efficient customs
\nand tax services and conducive labor and business regulations.<\/p>\n
The questions then are these: If there is nothing
\nfundamentally wrong with the economic plan of the present
\ngovernment, why is our economy trapped in a low-growth cycle? Why
\nare 10 percent of the nation's 103-million-strong workforce
\nunemployed? What makes foreign investors shun our economy and
\ndomestic investors still reluctant.<\/p>\n
Here, we think, lies the real importance of the presidential
\nelection next month, and what happens thereafter.<\/p>\n
What is fatally missing from the present government is a real
\nsense of crisis, and a sense of urgency to make decisions on, and
\nresolutely execute, the right priority programs. Because, as
\nstrong as the Megawati government claims macroeconomic stability
\nto be, the economy not only remains highly fragile but also
\ncontinues to bleed, suffering under mountains of foreign and
\ndomestic debt.<\/p>\n
What is urgently needed, therefore, is a strong leader with a
\nteam of able and credible ministers. Ministers of impeccable
\nintegrity, who would work in the spirit of a hospital's emergency
\nunit, whereby fast decisions and concrete programs of action are
\nmore important than bureaucratic rigidities.<\/p>\n
However, such an overall work spirit is possible only if the
\nnew government is able, through good governance practices, to get
\nthe public on side and secure the support of the House of
\nRepresentatives -- unlike the present administration, which has
\nsuffered constant public suspicion regarding any major decision,
\nwhether planned or implemented. Consider the trouble the current
\nadministration has had trying to sell some of its assets -- even
\nalready approved by the House -- without setting off an
\nemployee's revolt, or prompting analysts to cry fault.<\/p>\n
With some modifications and adjustments the spirit and format
\nof Monday's business dialogs with the Indonesian Chamber of
\nCommerce and Industry could be transformed by the new government
\ninto an economic-crisis management center, where policy decisions
\ncould be decided with speed and coordinated by fiat decisions at
\nthe highest level.<\/p>\n
____________<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/a-business-solution-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }