More deregulation measures needed to boost economy<\/p>\n
JAKARTA (JP): The government's deregulation measures are not
\nyet sufficient to boost the economy, a senior economist said
\nyesterday.<\/p>\n
Ali Wardhana, a former finance minister and currently the
\ngovernment's senior economic advisor, said more deregulation
\nmeasures were needed to sustain the country's high economic
\ngrowth.<\/p>\n
\"Despite the progress in establishing sound economic
\nfundamentals, much remains to be done in achieving solid record
\neconomic growth,\" he told a business luncheon.<\/p>\n
The government has since 1983 introduced several packages of
\neconomic reforms to stimulate economic activities.<\/p>\n
But many economists said the government's deregulation
\nmeasures did not deal with the country's real issues such as
\nbusiness inefficiency and red tape. Deregulation has also not yet
\ntouched the monopoly of certain business groups or institutions.<\/p>\n
Coordinating Minister for Economy and Finance Saleh Afiff said
\nlast month the government would scrap the monopoly given to the
\nNational Logistics Agency (Bulog) to import certain important
\ncommodities such as sugar and wheat.<\/p>\n
\"Halfway measures are not enough,\" said Ali. \"If we want to
\nsuccessfully and speedily address the unfinished deregulation
\nagenda, especially if we implement measures to deal with
\nweaknesses in our financial sectors, there is no doubt that
\nIndonesia will rapidly regain its growth momentum.\"<\/p>\n
He admitted yesterday that Indonesia had created a vibrant
\neconomy which had produced a strong record of growth lifting
\nmillions of people out of poverty.<\/p>\n
\"Indonesia has spread the benefits of development to many
\npeople,\" he said.<\/p>\n
But he warned the government should not be too quick to boast
\nabout the country's successful economic development.<\/p>\n
\"The danger is that pride in our development achievements will
\ncreate a feeling of complacency and lead us to believe that we
\nhave done all that needs to be done. This is far from correct,\"
\nhe said.<\/p>\n
He said recent currency market turbulence, for example, should
\nmake the government more aware of the need for further reforms.<\/p>\n
\"The shock of the currency movements should stir us from any
\nfeeling of overconfidence that may have existed.<\/p>\n
\"The recent turbulence surrounding the regional currencies
\nshould be a wake-up call for Indonesia,\" he said.<\/p>\n
The country's resident chief of the World Bank Dennis de Tray
\nalso highlighted yesterday the need for Indonesia, along with
\nother Southeast Asian countries, to continuously reform their
\nfinancing system to boost development.<\/p>\n
\"But in the case of Indonesia, further reforms should not only
\nbe taken in the face of a currency crisis... but also for the
\nwhole economic system,\" he said.<\/p>\n
Dennis said reforms in the financing system and real sectors
\nshould be taken more quickly and transparently to solve current
\nproblems hampering the country's economic development. (aly)<\/p>",
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