{
    "success": true,
    "data": {
        "id": 1008704,
        "msgid": "new-deregulation-may-lead-to-high-inflation-1447893297",
        "date": "1994-06-08 00:00:00",
        "title": "New deregulation may lead to high inflation",
        "author": null,
        "source": "JP",
        "tags": null,
        "topic": null,
        "summary": "New deregulation may lead to high inflation JAKARTA (JP): The government's new deregulatory measures significantly easing restrictions for foreign investors may encourage rapid development of investment projects that will in turn lead to high inflation, an economist says.",
        "content": "<p>New deregulation may lead to high inflation<\/p>\n<p>JAKARTA (JP): The government's new deregulatory measures<br>\nsignificantly easing restrictions for foreign investors may<br>\nencourage rapid development of investment projects that will in<br>\nturn lead to high inflation, an economist says.<\/p>\n<p>\"The new deregulation will likely cause a rush on land<br>\nacquisition and purchases of construction materials, thereby<br>\npushing consumer prices higher,\" Dorodjatun Kuntjorojakti, an<br>\neconomics lecturer at the University of Indonesia, told reporters<br>\nhere yesterday.<\/p>\n<p>He said after delivering a speech during a tourism workshop<br>\nthat the new deregulation, which was announced by the government<br>\nlast week, will encourage foreign investors to establish<br>\nindustrial facilities in Indonesia.<\/p>\n<p>The government, under Government Regulation No. 20\/1994,<br>\nreduces the minimum equity holding for Indonesian partners in<br>\nforeign joint ventures, removes the compulsory divestment<br>\nrequirements and allows foreign investors to get involved in the<br>\ndevelopment and management of infrastructure facilities.<\/p>\n<p>Dorodjatun said the new deregulation is attractive enough to<br>\nencourage foreign investors to set up investment projects on<br>\nislands other than Java, where infrastructure facilities have not<br>\nbeen adequately developed.<\/p>\n<p>\"There will be large-scale projects, including those on<br>\ninfrastructures, to be developed by foreign investors,\" he said.<\/p>\n<p>He said the expected good response of investors towards the<br>\nnew deregulation may support rapid expansion of the country's<br>\neconomic activities.<\/p>\n<p>\"But we must be alert that too strong a response may cause<br>\nhigh inflation,\" he said.<\/p>\n<p>The country's inflation during the first five months of this<br>\nyear reached 4.47 percent, close to the maximum of five percent<br>\nthat the government wants maintain within the year.<\/p>\n<p>Airlines<\/p>\n<p>Meanwhile, an airline executive said yesterday the new<br>\ngovernment policy will help domestic airlines obtain fund<br>\ninfusions for expansion, but on the other hand, may cause tighter<br>\ncompetition.<\/p>\n<p>\"The policy will indeed smooth domestic businessmen in getting<br>\nforeign investment,\" Secretary General of the Indonesian National<br>\nAir Carrier Association Benny Rungkat said.<\/p>\n<p>However, he suggested a follow-up plan for the government.<\/p>\n<p>\"They should simplify bureaucratic procedures, especially at<br>\nlocal offices,\" he said. (icn)<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/new-deregulation-may-lead-to-high-inflation-1447893297",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}