Govt pushes to focus on real sector<\/p>\n
Anissa S. Febrina, The Jakarta Post, Jakarta<\/p>\n
Aside from addressing the chronic problems of the high-cost
\neconomy, the government needs to balance its focus on
\nmacroeconomy with efforts to prioritize the real sector next year
\nif it wants to reduce unemployment, a powerful business group
\nsays.<\/p>\n
Speaking at the group's evaluation of the country's 2005
\neconomy on Tuesday, Indonesian Chamber of Commerce and Industry
\n(Kadin) chairman M. S. Hidayat said the government had to make a
\nlist of potential industrial sectors and produce comprehensive
\npolicies to help them and the real sector in general.<\/p>\n
Attributed in part to this year's fuel price increases,
\nseveral industries in the country have been forced to lay off
\nworkers. According to the Central Bureau of Statistics (BPS), the
\nopen unemployment rate reached, as of November, 10 percent of the
\ncountry's 106 million workforce.<\/p>\n
That figure is likely to rise as several big companies, such
\nas the world's largest instant noodle producer PT Indofood, have
\nsaid more layoffs are in the pipelines.<\/p>\n
\"Our economy must grow by 7 percent next year to be able to
\nabsorb 350,000 more workers,\" Hidayat said, adding that reaching
\neven 6 percent would be difficult amid soaring inflation.<\/p>\n
The classic problems of the high-cost economy, overlapping
\ntaxes and tariffs as well as increasing energy costs are among
\npressing issues.<\/p>\n
In its evaluation, the chamber said the country's rigid
\nbureaucratic system, the ever-occurring \"black\" or illegal
\neconomy and the structural problems faced by the financial and
\nbanking sectors inevitably made the situation worse.<\/p>\n
\"The government should sit down with the private sector on
\nwhich industries to focus on, and later on figure out which
\nbanking and financial policies could be made to support them,\"
\nHidayat said.<\/p>\n
The chamber has listed several labor-intensive industries like
\nthe textiles, garment, footwear and agricultural-based businesses
\nthat have potential as the country's industrial focus.<\/p>\n
Hidayat stressed again the importance of tax and other fiscal
\nincentives to help alleviate the burden of increasing production
\ncosts on industries.<\/p>\n
\"More importantly, the government must carry out the promised
\nbureaucratic reforms,\" the chamber's vice chairman Rachmat Gobel
\nadded.<\/p>\n
Gobel said consistency in policy-making was essential
\nif private sector businesses were to be encouraged to expand.<\/p>\n
He said the high tariffs imposed on raw industrial materials,
\nfor example, would force companies to shift to trading rather
\nthan developing their manufacturing companies.<\/p>\n
Aside from that, he said, other unnecessary costs such as the
\nhigh distribution costs due to insufficient transportation
\ninfrastructure needed to be reduced.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-pushes-to-focus-on-real-sector-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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