Export, investment teams<\/p>\n
The business community reacted skeptically to the recent
\nissuance of a presidential decree on the establishment of an
\nExport and Investment Promotion Team, saying that this move would
\nnot significantly improve policy coordination -- nor would it
\nexpedite the decision-making process within the government.<\/p>\n
Business leaders wonder what the team can do in the remaining
\n10-month tenure of the Megawati administration, as the new
\ngovernment that will take over in late October 2004 might simply
\ndisband the team anyway.<\/p>\n
Moreover, the team has yet to convene its first meeting and
\nform its core staff and set its working programs, operational
\nprocedures and other technical details.<\/p>\n
At first glance, the team appears to be very powerful with a
\nstrong leadership, as it is headed by President Megawati
\nSoekarnoputri herself and includes all coordinating ministers and
\nother Cabinet members who are directly or indirectly involved
\nwith promoting export and investment.<\/p>\n
The team will work mainly through two operational arms: the
\nNational Export Promotion Task Force, to be headed by the
\nminister of industry and trade, and the National Investment
\nPromotion Task Force, to be led by the chief of the Investment
\nCoordinating Board. Both task forces have yet to be formed.<\/p>\n
Notwithstanding the significant improvement in macroeconomic
\nstability, the Megawati administration has been notorious for its
\nacute lack of leadership in pushing through economic reform
\nmeasures and for being virtually devoid of any sense of urgency
\nand an appropriate sense of priority.<\/p>\n
Given these constraints, one cannot avoid feeling that the
\nexecutive order on the team's establishment was issued merely to
\nfulfill, at least in its appearance, one of the targets
\nstipulated in the government's White Paper on reform measures.<\/p>\n
What is really needed is not another team, but a sense of
\nurgency and effective leadership to implement what has been set
\nout in the reform agenda. The monthly Cabinet meeting on economic
\naffairs is already adequate to make and coordinate policies.<\/p>\n
What has been missing so far from the monthly meeting is a
\ntrue spirit of teamwork and an urgency to act, as discussions
\nseem to be more a formality than a vigorous, thought-process
\nabout policy instruments.<\/p>\n
The most outstanding shortcoming of the monthly meetings,
\nthough, is the absence of business leaders or representatives
\nfrom various industrial associations -- people who are supposedly
\nthe most apprised of developments in various business sectors.<\/p>\n
Since the government has decided to establish the team any
\nway, concerted efforts should be undertaken to make it as
\neffective a team as possible.<\/p>\n
The first order of the day requires President Megawati to make
\nit clear from the outset that the team means real business. This
\nfurther means that the top priority is to better policy
\ncoordination so as to resolve problems in the field as quickly as
\npossible.<\/p>\n
The membership of each of the two task forces, therefore,
\nshould be formed in such a way so that each task force has the
\nauthority and capability to decide on concrete measures to
\nincrease export and investment.<\/p>\n
Take, for example, the export promotion task force. Its
\nmembership should include all representatives from government
\ninstitutions as well as industry and trade associations directly
\nrelated to foreign trade -- such as tax and customs offices,
\ndistribution services, banks, port authorities and stevedoring
\ncompanies.<\/p>\n
Export is an inter-sectoral economic activity, and is at the
\nend of a long chain of operations starting from the import of
\nmaterials to port handling, to distribution, processing and
\nshipment. A defect in even one link of the chain could adversely
\naffect the competitiveness of exports from either delayed
\ndelivery or higher prices.<\/p>\n
Likewise, the investment promotion task force should consist
\nof inter-ministerial representatives authorized to make decisions
\nin their respective areas. Similar to export promotion,
\ninvestment promotion is influenced by policies in various
\nsectors.<\/p>\n
The investment task force should focus on streamlining the
\ninvestment licensing system and transform it into a one-stop
\nservice center, while empowering investment bureaus at the
\nprovincial level to address investors' grievances.<\/p>\n
__________<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/export-investment-teams-1447899208", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }