Aburizal's coordination<\/p>\n
Chief economics minister Aburizal Bakrie correctly observed
\nlast week that it was difficult to reduce the high costs of the
\neconomy without better coordination among the various economics
\nministries and government agencies.<\/p>\n
By making these remarks after accompanying President Susilo
\nBambang Yudhoyono to a meeting with Australian businesspeople in
\nSydney, Aburizal was essentially acknowledging a failure to do
\nhis job as the coordinating minister for the economy.<\/p>\n
Coordinating all the economics ministers in a concerted effort
\nto address the high costs that have damaged the competitiveness
\nof our economy should have been at the top of Aburizal's agenda
\nright from the start. He should have developed the Coordinating
\nTeam for Facilitating Exports and Imports, which he chairs, into
\nan effective business-solution forum where all problems related
\nto exports and imports could be resolved quickly.<\/p>\n
As the country's economic ills have been correctly diagnosed
\nand appropriate policy prescriptions formulated, taking into
\naccount the recommendations of the Indonesian Chamber of Commerce
\nand Industry (Kadin) in its Business Road Map, Aburizal should
\nhave been able to draw up an appropriate set of priorities and
\nmeasures to remove one by one the high-cost factors in the
\neconomy.<\/p>\n
As Aburizal is a former chairman of Kadin and took an active
\npart in preparing the chamber's Business Road Map, he must be
\nfamiliar with the most pressing problems that have made
\nIndonesian exports much less competitive compared to exports from
\ncountries such as Vietnam and China. Aburizal also does not have
\nto worry too much about interministerial jealousy because he has
\npowerful support -- Vice President Jusuf Kalla, also a former
\nKadin leader, who was appointed by the President to run the day-
\nto-day management of the economy.<\/p>\n
A former businessman, Aburizal must be aware of the gross
\ninefficiency at ports that has made the port-handling costs in
\nthe country almost twice as high as those in other ASEAN
\ncountries. These high costs are the result of arduous clearance
\nprocedures, a corrupt customs service and unnecessary
\nintervention in port operations by other state agencies.<\/p>\n
What Aburizal needs to do now is demonstrate effective
\nleadership to turn the Coordinating Team for Facilitating Exports
\nand Imports into an operations center where economics ministers,
\ntop bureaucrats and leaders of business associations can work
\ntogether to formulate a plan to fix the country's economic
\nproblems. Any barriers to international trade such as inefficient
\nports, punitively high terminal handling charges, arduous customs
\nclearance should be addressed immediately by the coordinating
\nteam.<\/p>\n
Aburizal should see to it that the team makes bureaucratic
\naction more important than bureaucratic procedures and
\nrigidities, resolving problems by executive fiat on the spot, all
\nwith the clear objective of removing economic barriers one by
\none.<\/p>\n
Facilitating exports and imports would resolve the bulk of our
\neconomic ills because international trade accounts for more than
\n50 percent of the country's economic activities. Moreover,
\nexports and imports are closely related. The process for the
\nproduction of export goods usually begins with the import of
\nbasic materials. The implementation of investment projects starts
\nwith the import of capital goods. Further down the line, a smooth
\nflow of goods enhances economic interlinkages between provinces
\nand islands.<\/p>\n
A combination of executive leadership from Kalla and
\ncoordination provided by Aburizal for all the economics
\nministers, as well as support from business leaders, should
\nenable the coordination team to create a conducive environment
\nfor managing the economy.<\/p>\n
Proper policy instruments, however small they may initially
\nseem, will increase the public's confidence in the government's
\neconomic management, and this in turn will create an environment
\nfor the introduction of other measures.<\/p>\n
Local and foreign businesspeople do not expect all of the
\nproblems to be resolved overnight, realizing that many measures
\nto improve the business and investment climate require
\ninstitutional reform and behavioral changes. But the business
\ncommunity does expect the government to move quickly to
\ndemonstrate its commitment to steady, concrete steps toward
\neconomic reform, however small the steps may be.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/aburizals-coordination-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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