Business expansion to be regulated<\/p>\n
JAKARTA (JP): The government is processing a regulation on the
\nexpansion of large businesses with domestic market shares of more
\nthan 50 percent amid public debate on the same issue.<\/p>\n
Coordinating Minister for Trade and Industry Hartarto said
\nyesterday that he and a number of related ministers are preparing
\na government regulation on business expansions.<\/p>\n
The other ministers include Minister of Industry Tunky
\nAriwibowo, Minister of Trade Satrio B. Joedono, Minister of
\nFinance Mar'ie Muhammad, Minister of Agriculture Sjarifudin
\nBaharsjah and Minister of Cooperatives and Small Enterprises
\nSubiakto Tjakrawerdaya.<\/p>\n
Without the regulation, the government refers to the negative
\nlist of investment, which closes certain sectors to large
\nbusiness groups as well as foreign investment, when dealing with
\nlarge business proposals, Hartarto said.<\/p>\n
Hartarto, who chairs the ministerial team, declined to explain
\nthe possible contents of the regulation, revealing only that it
\nwould contain many aspects related to business expansion,
\nincluding the ownership of the business groups intending to
\nexpand their businesses.<\/p>\n
\"Just wait, I cannot yet speak more on this matter,\" Hartarto
\nwas quoted by Antara as saying.<\/p>\n
He said earlier that large business groups were still allowed
\nto expand their production capacities despite their leading
\nposition in the local market. He stressed that the most important
\nthing was not market shares but company ownership.<\/p>\n
Sanyoto<\/p>\n
The issue of business expansion broke out when State Minister
\nof Investment Sanyoto Sastrowardoyo refused to extend an
\nexpansion license to the publicly-listed PT Indofood Sukses
\nMakmur, which already controlled 90 percent of the domestic
\ninstant noodle market.<\/p>\n
Sanyoto said in a hearing with the Manufacturing and Energy
\nCommission of the House of Representatives early last month that
\nthe government would not issue expansion licenses for companies
\nwhich already held a share of more than 50 percent of the market.<\/p>\n
Such a move was welcomed by the House's members but was
\ncriticized severely by large business groups, which claimed that
\nthe restriction would erode their competitive edge on the
\ninternational market.<\/p>\n
After meeting with President Soeharto -- the same day
\nSudwikatmono of Indofood met with Soeharto -- Sanyoto said
\ncompanies with a market share of more than 50 percent were
\nallowed to expand their production capacities as long as the
\nexpansion was aimed for exports.<\/p>\n
I Nyoman Moena, former chairman of PT Surveyor Indonesia,
\napplauded the government's move to issue a new ruling on business
\nexpansion.<\/p>\n
He warned, however, that economic stability would collapse if
\nthe government gave expansion chances to large companies without
\nforging more partnership between large and small companies.<\/p>\n
\"If partnership between small and large companies can work
\nwell, the government's expansion policy for large entities will
\nnot serve a boomerang for small businesses,\" Moena said. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/business-expansion-to-be-regulated-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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