Businesses to monitor post-IMF programs<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
Business lobby groups announced on Wednesday they would
\nclosely monitor the implementation of the government's economic
\nreform programs after the current IMF program ends later this
\nyear.<\/p>\n
The business community has set up a monitoring committee to
\ncarry out the job. The chairman of the committee, Sofyan Wanandi,
\nsaid monitoring the implementation of legal reform in the country
\nwas on the priority list for the committee.<\/p>\n
The committee said the deliberation of laws should take place
\nonly after they have been discussed publicly with stakeholders
\noutside the government, adding that the laws should be more
\nfacilitative than restrictive.<\/p>\n
Immediate action should be taken to eliminate inconsistencies
\nand contradictions between regional and national regulations or
\nlaws, and between government ministries, so that passed
\nregulations or laws can be consistently upheld and honored, the
\ncommittee said.<\/p>\n
The country's weak legal system has been one of the main
\nfactors for the poor investment climate here. With the
\nInternational Monetary Fund is scheduled to end its reform
\nprogram by the end of this year, there have been concerns that
\nthe government might be tempted to backtrack on reforms,
\nparticularly in the legal sector.<\/p>\n
Sofyan said it was important for the business community to
\nmonitor the progress and problems that might arise in the
\nimplementation of the various reform measures.<\/p>\n
He added the committee would provide the government with input
\nfrom the perspective of the business community, as a way to
\nimprove the implementation of the post-IMF reform programs.<\/p>\n
He also explained that the monitoring by the committee was
\npart of efforts to increase pressure when dealing with
\nquestionable policies made by the government.<\/p>\n
\"We cannot just trust the government. We are mostly concerned
\nwith the substance of the policies made by the government rather
\nthan whether the government can manage to complete its program on
\ntime,\" said Sofyan.<\/p>\n
The committee consists of members of the Indonesian Business
\nChamber of Commerce and Industry, the Jakarta Japan Club
\nFoundation, the American Chamber of Commerce, the International
\nBusiness Chamber of Commerce and a number of independent
\neconomists.<\/p>\n
The government has decided not to extend the current IMF
\nprogram, opting for a postprogram monitoring arrangement (PPM)
\nunder which the government will still hold regular consultations
\nwith the Fund.<\/p>\n
However, the government can design its own reform program.
\nUnder the PPM arrangement, Indonesia will not need to repay its
\nloans to the IMF too far ahead of installment schedules.<\/p>\n
Businesspeople and analysts said the post-IMF monitoring
\nprogram was crucial to maintaining investor confidence in the
\neconomy.<\/p>\n
Other priorities to be monitored by the committee<\/p>\n
1. Taxation<\/p>\n
- Reform tax administration and improve quality of services to<\/p>\n
taxpayers, such as expanding the scope of large tax offices,
\nspeeding up tax refunds and establishing independent mechanisms
\nto identify<\/p>\n
and address taxpayer rights and concerns.<\/p>\n
- Proper and fair implementation of the tax administration.<\/p>\n
- Continue the efforts to broaden the tax base.<\/p>\n
- Increase Indonesia's tax competitiveness and simplify the<\/p>\n
tax structure and rates.<\/p>\n
2. Customs<\/p>\n
- Reform of customs administration<\/p>\n
- Improve the quality of customs officials<\/p>\n
- Proper and fair implementation of the customs<\/p>\n
administration.<\/p>\n
3. Employment<\/p>\n
- Finalize the implementation of regulations in manpower law
\nNo.<\/p>\n
13\/2003 through a consultative process.<\/p>\n
- Finalize the draft law on dispute settlement in industrial<\/p>\n
relations through a consultative process.<\/p>\n
4. Energy<\/p>\n
- Complete government regulation on Law No. 22\/2001 on oil and<\/p>\n
gas.<\/p>\n
- Amend Law No. 11\/1967 on mining<\/p>\n
- Set energy pricing by gradually changing energy prices to<\/p>\n
reflect the true costs.<\/p>\n
5. Electricity<\/p>\n
- Prepare draft government regulation to implement Law No.<\/p>\n
20\/2002 on electric power in consultation with the industry<\/p>\n
stakeholders.<\/p>\n
- Develop compensation programs for land, building and plants<\/p>\n
under electric power transmission lines.<\/p>\n
- Gradually adjust electricity rates to reflect the cost of<\/p>\n
generating electricity.<\/p>\n
6. Small and Medium Enterprises (SMEs)<\/p>\n
- Improve SMEs access to funds in banks.<\/p>\n
- Reform the present banking regulation and overcome obstacles<\/p>\n
in the banking credit system.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/businesses-to-monitor-post-imf-programs-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }