Further deregulation in the works<\/p>\n
JAKARTA (JP): The government will announce deregulatory
\nmeasures on key aspects of the economy later this month in order
\nto encourage competition and improve efficiency, Minister\/State
\nSecretary Moerdiono said yesterday.<\/p>\n
"The planned deregulatory measures are intended to increase
\nour domestic competitiveness in utilizing the momentum of market
\nglobalization," Moerdiono said after a meeting with President
\nSoeharto at the Bina Graha presidential office.<\/p>\n
Moerdiono was accompanied by Widjojo Nitisastro, an economic
\nadvisor to the government who is a former coordinating minister
\nfor economic, financial and industrial affairs and former
\nchairman of the National Development Planning Board.<\/p>\n
Key aspects of the economy are generally taken to include
\ndomestic and foreign trade, investment, transportation,
\nagriculture, mining and manufacturing. However, neither Moerdiono
\nnor Widjojo provided details of the planned deregulatory
\nmeasures, with Moerdiono saying only that the measures would be
\nannounced this month.<\/p>\n
A foreign investment consultant told The Jakarta Post
\nyesterday that a number of observers and businessmen believed the
\nnext deregulatory steps were likely to include new policies on
\nagricultural commodities, particularly soybeans and soymeal.<\/p>\n
The government's most recent investment deregulation package,
\nissued in June last year, significantly reduced restrictions on
\nforeign investments in various sectors, including,
\ntelecommunications, power generation and ports.<\/p>\n
That deregulation package, Government Regulation No. 20\/1994,
\nalso freed foreign investors from minimum capital requirements
\nand effectively ended compulsory divestment requirements.<\/p>\n
The World Bank, in a recent seminar on deregulation, said that
\ncontinued deregulation was crucial if Indonesia was to maintain
\nits rapid economic growth, to raise its competitiveness and to
\nfulfill its commitments under international trade and investment
\nagreements.<\/p>\n
At yesterday's press briefing, Moerdiono declined to reply
\njournalists' questions regarding various political issues, such
\nas the East Java provincial administration's decision to ban
\nMegawati Soekarnoputri, who chairs the Indonesian Democratic
\nParty (PDI), from visiting the province.<\/p>\n
"The President has recently instructed ministers that they
\nshould not make any statements on matters outside their
\nportfolios," he said. (hdj)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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