Govt team to keep state firms and agencies in line<\/p>\n
JAKARTA (JP): The special import monitoring team set up on the
\nbasis of a presidential decree last week will ensure that
\ngovernment and state company projects remain on track, a senior
\nofficial said over the weekend.<\/p>\n
\"Many projects undertaken by state companies to date have
\ndeviated from the track of the government's development priority
\nprogram,\" said State Minister of National Development Planning
\nGinandjar Kartasasmita.<\/p>\n
Ginandjar said that many government agencies often prefer
\nimported products, which is against government policy.<\/p>\n
\"Such a tendency can be seen from the large amount of goods
\nimported for their projects. This should be stopped,\" he told the
\nKompas daily over the weekend.<\/p>\n
President Soeharto last Tuesday issued Decree No. 19\/1996,
\nwhich charges the team with monitoring government projects and
\nthose of state companies and making sure that their projects use
\nas many local products as possible.<\/p>\n
The special team also has the authority to shelve or
\nreschedule projects which could put pressure on the current
\naccount.<\/p>\n
Headed by Coordinating Minister for Economy and Finance Saleh
\nAfiff, the team is responsible directly to President Soeharto.<\/p>\n
Its members include the finance minister, the state minister
\nof national development planning\/chairman of the National
\nDevelopment Planning Board, the minister of industry and trade
\nand the governor of Bank Indonesia.<\/p>\n
Synergy<\/p>\n
Ginandjar noted that the basic principle of the presidential
\ndecree is to improve the synergy between state company projects
\nand the government's development program.<\/p>\n
Until now, every state company project has only been subject
\nto the approval of commissioners. There have been no guarantees
\nthat projects are undertaken in support of the nation.<\/p>\n
He added that the team will also try to curb unnecessary
\nimports by encouraging the use of local products for government
\n(and state company) projects.<\/p>\n
Minister of Finance Mar'ie Muhammad concurred that the
\npresidential decree was issued keep tabs on the current account
\ndeficit, which is expected to rise sharply to US$8 billion in the
\ncurrent fiscal year, and to cool down the overheating economy.<\/p>\n
Ginandjar said the commissioners of state companies generally
\nare not effective in keeping their activities in line with the
\ngovernment's objectives.<\/p>\n
Inadequate supervision is often the result of commissioners
\nwho do not understand the government's development program, he
\nsaid.<\/p>\n
The minister said that from now on every state company project
\nwill be subject to the team's assessment before it can be
\nimplemented.<\/p>\n
\"By so doing, we can guarantee that those projects will be
\nkept in line with the government's development program,\" he
\nnoted.<\/p>\n
The policy is necessary to strengthen the country's economic
\nself-reliance and prevent it from being too dependent on imports.
\nIt will also help promote state companies as a market for local
\nproducts, he added.<\/p>\n
\"We have a large number of state companies (more than 200). If
\nthey can serve as the market for our own products, then we'll
\nhave many advantages to strengthen our economy,\" he said. (13)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-team-to-keep-state-firms-and-agencies-in-line-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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