Kadin warned against colluding with state officials<\/p>\n
Rendi A. Witular and Zakki P. Hakim, The Jakarta Post, Jakarta<\/p>\n
While the business community is still facing chronic government
\nred tape in running their businesses here, Vice President Jusuf
\nKalla is urging them not to use is as an excuse to collude with
\ngovernment officials.<\/p>\n
Speaking during a leaders meeting of the country's powerful
\nbusiness lobby -- the Indonesian Chamber of Commerce and Industry
\n(Kadin) -- last week, Kalla repeated earlier calls by President
\nSusilo Bambang Yudhoyono to drop corrupt practices in doing
\nbusinesses.<\/p>\n
"It is time for businessmen to detach themselves from
\ncollusion practices. It is time for us to run our businesses
\nfairly," said Kalla, who is the former chairman of family-run
\nHadji Kalla business group.<\/p>\n
Kalla's remark was made at a time when the government is in
\nthe process of tendering a number of massive infrastructure
\nprojects. The first batch offers 91 projects valued at US$22.5
\nbillion, to be followed later in November by a second offering of
\nprojects worth about $57.5 billion.<\/p>\n
There are concerns that the projects would only be granted to
\nthose who have strong political ties.<\/p>\n
Meanwhile, Kadin chairman Mohamad S. Hidayat said the calls
\nfor "clean" businesses could only take place if corruption within
\nthe civil service is reduced and the bureaucratic chains are
\ncutback.<\/p>\n
"It is good advice. But the government has to show that it has
\nmanaged to clean up corruption on the part of state officials and
\nhas reformed the bureaucracy. This is the only way to prevent
\ncorrupt business practices," said Hidayat.<\/p>\n
Critics have said that the Susilo-Kalla administration has
\nfailed to produce improvement in the country's investment and
\nbusiness climate during its first three months.<\/p>\n
Questions also linger over the seriousness of the government
\nin trying to cut the corruption and collusion chain between the
\nbusiness community and state officials, given the questionable
\ntrack record of some high-ranking state officials, including
\nKalla himself.<\/p>\n
When Kalla was the coordinating minister for people's welfare
\nunder president Megawati Soekarnoputri in 2002, his company PT
\nHadji Kalla managed to convince state social security firm PT
\nJamsostek to invest in the company's medium-term notes (MTNs)
\nworth Rp 200 billion (US$22.2 million).<\/p>\n
The Supreme Audit Agency (BPK), that audited Jamsostek,
\ndeclared later that the MTNs issued by Hadji Kalla had a high
\nrisk of default due to some irregularities during the issuing
\nprocess.<\/p>\n
Kalla has denied the accusation, saying that his company had
\nfollowed all necessary regulations in issuing the MTNs.<\/p>\n
"We have to ensure that Susilo and Kalla are not abusing their
\nauthority to allow their family members and friends to receive
\nstate facilities. We need that assurance before we can believe in
\nthem," said a noted businessman who asked for anonymity.<\/p>\n
Recommendations made during Kadin meeting<\/p>\n
* Improve coordination between the private sector and the
\n government.<\/p>\n
* Provide a minimum rate for air transportation.<\/p>\n
* Improve the role and performance of the Supervision Agency
\n for Air Carrier Safety.<\/p>\n
* Support the formation of a national profession certification
\n agency (BNSP).<\/p>\n
* Set up a national productivity council in a bid to help
\n increase the country's industrial output.<\/p>\n
* Enhance the country's product standards.<\/p>\n
* Promote the use of local products.<\/p>\n
* Reduce rates for value-added tax and income tax.<\/p>\n
* Waive taxes for equipment used in research and
\n development activities.<\/p>\n
* Revoke departure tax.<\/p>\n
Source: Kadin<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/kadin-warned-against-colluding-with-state-officials-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }