Kadin urges fair treatment<\/p>\n
JAKARTA (JP): The Indonesian Chamber of Commerce and Industry
\n(Kadin) yesterday called on the government to pursue a
\ntransparent incentives policy and quickly ease liquidity to
\ninject life into businesses.<\/p>\n
The chamber said after a national coordinating meeting of its
\nexecutives here that the government should now develop a
\ntransparent policy to deal with a high-cost economy.<\/p>\n
"The government should not waive certain companies from import
\ntariffs on capital goods and raw materials. This facility should
\nbe open to everyone with clear-cut guidelines," said chairman of
\nthe chamber's real estate sector, Agus Kartasasmita.<\/p>\n
"The government is also expected to give tax holiday
\nincentives to all new businesses which create more employment and
\nearn foreign exchange. This facility should not be limited to
\ncertain firms," he added.<\/p>\n
Last month, the government granted tax holiday facilities to
\nsix firms: PT Polysindo Eka Perkasa, PT Texmaco Perkasa
\nEngineering, PT Kiani Kertas, PT Smelting Copper Co., PT Trans
\nPacific Petrochemical and PT Seagate Technology Sumatra.<\/p>\n
The chamber also called on the government to ease liquidity as
\nmost businesses now faced serious liquidity problems, which could
\nlead to unemployment problems.<\/p>\n
"In a bid to enliven businesses, tight money should be
\nloosened and the government should no longer use tight money to
\nstabilize the rupiah against the U.S. dollar," Agus said.<\/p>\n
The chamber suggested the government let the market decide on
\nthe fair value of the rupiah.<\/p>\n
It also called on the government to help reduce banking
\nlending rates to a healthy level by cutting further short-term
\nBank Indonesia Certificates (SBI) rates to 20 percent by the end
\nof this month and 15 percent by the end of this year.<\/p>\n
Minister of Finance Mar'ie Muhammad said at a hearing with the
\nHouse of Representatives' Budgetary Commission that the
\ngovernment was committed to easing rupiah liquidity.<\/p>\n
"We are already aware of the situation and we understand that
\nif this tight liquidity continues for long, it will punish
\neveryone," Mar'ie told the commission.<\/p>\n
Mar'ie also said that Bank Indonesia, the central bank, would
\ncontinue to cut its short-term papers to a healthy level after it
\ncut one-month and three-month SBI rates twice by 5 percentage
\npoints to 25 percent and 23 percent respectively. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/kadin-urges-fair-treatment-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
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