New deregulation aims to strenghten industry<\/p>\n
JAKARTA (JP): Minister of Trade and Industry Tunky Ariwibowo
\nyesterday asserted that the deregulation measures which
\nthe government will soon introduce were not meant to compensate for
\nthe recent increase in production costs.<\/p>\n
Tunky said here that the deregulation is aimed to create a
\nstrong and efficient domestic industry.<\/p>\n
\"There is nothing the government wants more than to create an
\natmosphere which is conducive to business; especially because we
\nwill soon be entering an era of free trade,\" Tunky said as quoted
\nby Antara.<\/p>\n
He denied rumors that the deregulation package to be issued by
\nthe government was motivated by pity on businesses which had to
\nincrease wages last month, thereby increasing production costs.
\nThe government plans to issue a deregulation package soon, as
\na follow-up to package issued last January.<\/p>\n
The January deregulation package, which was aimed at improving
\nthe country's export performance and encouraging the
\nestablishment of more export-oriented enterprises, was felt by
\nmany analysts to fail to address the key problems of Indonesia's
\nexport-oriented sector. There were also allegations that it
\nbenefited only selected business sectors.<\/p>\n
The upcoming deregulation package will focus on labor-
\nintensive industries and afford them various fiscal, monetary and
\nadministrative help, Tunky said.<\/p>\n
In the fiscal sector, for example, the government is to
\nprovide tax incentives for value-added tax and in the monetary
\nsector lower interest rates are in the offing. In the
\nadministrative domain, the government will simplify export and
\nimport procedures.<\/p>\n
Tunky explained that the main point of the upcoming
\nderegulatory measures was to increase the efficiency of labor-
\nintensive, export-oriented industries, such as the textile, shoe
\nand electronics industries.<\/p>\n
But he added that the deregulation measures will not be
\nconfined to those industries.<\/p>\n
He said the government would consistently support the
\ndevelopment of industries which have the potential to become
\nmajor foreign exchange earners.<\/p>\n
The government will not remain silent when our businesses
\nface problems,\" Tunky said, on a different tack, adding that
\nallegations of dumping often faced by Indonesian businesses were
\na serious problem that could affect exports.<\/p>\n
The government intends to see the problem contained within
\nthe issue of dumping. We will use the guidelines established by
\nthe World Trade Organization and see that everyone abides by all
\nits rules,\" he said. (pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/new-deregulation-aims-to-strenghten-industry-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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