Analysts call for "Indonesia Incorporated"<\/p>\n
JAKARTA (JP): Rapid changes towards globalization of economic
\nactivities require Indonesian firms to adjust their operational
\nstrategies and the government to introduce more deregulation,
\nanalysts say.<\/p>\n
Many feel that an interlocking economy similar to that of
\nJapan may be the answer.<\/p>\n
"The government and private companies must adjust quickly or
\nIndonesia will fall behind in the global economy," Hadi
\nSoesastro, an economist from the Centre for Strategic and
\nInternational Studies (CSIS), said in a seminar here yesterday.<\/p>\n
Hadi said the current economic trends were forcing Indonesian
\nfirms to gain access to information about developments in global
\nand regional markets, technology and skilled workers.<\/p>\n
The economist also said that the government must adopt
\npolicies to shape a condition which allows companies to have
\naccess to those "indispensable items."<\/p>\n
"The government can become, for example, a sort of a 'clearing
\nhouse' of information which will then be passed on to various
\ncompanies," he said.<\/p>\n
He asserted that quick adjustments to the changing world
\neconomy can only be achieved with a close coordination between
\nthe government and the business sector. "In short, we need an
\nIndonesian Incorporated."<\/p>\n
Transparency<\/p>\n
Nevertheless, Hadi warned that "Indonesian Incorporated" must
\nbe based on transparency and accountability. This is yet to be
\nfully achieved, he said.<\/p>\n
The analyst also argued that the government needs to develop
\nfocused technological and educational policies to quicken the
\nrequired adjustment process.<\/p>\n
"It is unfortunate that tax incentives are not allowed under
\nour tax laws," Hadi said.<\/p>\n
Indonesia's taxation policies only give incentives for
\ncompanies which invest in this country's under developed eastern
\nparts.<\/p>\n
On the same occasion, economist Dorodjatun Kuntjara Djakti
\nfrom the University of Indonesia also emphasized that Indonesian
\nfirms must have an access to global information on the latest
\ntechnology. "Without it, you will be in a state of panic,"
\nDorodjatun said.<\/p>\n
The economist also appealed that the government be more
\naggressive in promoting foreign capital to expand the country's
\nindustrial sector which presently only contributes 10 percent of
\nthe Gross Domestic Production (GDP).<\/p>\n
Dorodjatun said that the non-oil industrial sector should be
\nexpanded to 20 percent of GDP from only 15 percent at present.
\n(04\/icn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/analysts-call-for-indonesia-incorporated-1447899208",
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