No extra protection for small firms: Adi<\/p>\n
JAKARTA (JP): The government will not provide excessive
\nprotection for small and medium-scale enterprises because it
\nwould discourage competition, Minister of Cooperatives and Small
\nEnterprises Adi Sasono said on Tuesday.<\/p>\n
Adi said any efforts to build strong business competition
\nthrough protection would be doomed to fail, as was demonstrated
\nby past measures by the government.<\/p>\n
\"In past years, the government gave excessive protection to
\nconglomerates. This resulted in the destruction of our economy.\"<\/p>\n
\"The government will not repeat this mistake by providing
\nexcessive protection for small-scale businesses because it will
\nnot build competitiveness,\" he said at a seminar on rebuilding
\nIndonesia's international competitiveness.<\/p>\n
However, Adi said a certain amount of government protection
\nfor small businesses would be needed because the market economy
\nwould only take off when all players had equal footing.<\/p>\n
Adi, lambasted by critics for his populist policy of
\ndistributing cheap loans to small businesses, again defended his
\nso-called people's economy, calling it a democratized economy.<\/p>\n
\"We can't promote the people's economy if we continue to
\npractice cronyism like in the past. The people's economy means we
\nhave to democratize our economy.\"<\/p>\n
Adi also said his concept of the people's economy did not
\ncontradict with the market economy or oppose conglomerates or big
\nbusinesses.<\/p>\n
Big businesses are an essential part of his vision for
\ndeveloping the economy, he said, adding conglomerates still could
\ndo business in the country as long as they were not monopolistic.<\/p>\n
Adi promised the government would never tolerate monopolies or
\nunfair competition.<\/p>\n
\"There will be no more businessmen controlling over 3.6
\nmillion hectares of forests, controlling 90 percent of the supply
\nof a commodity or two companies holding 80 percent of the
\ndomestic paper market.\"<\/p>\n
\"Such practices have resulted in a high-cost economy because
\ncompetitors could not enter the market.\"<\/p>\n
However, efforts to ensure fair competition and create a
\ncompetitive market economy would be futile unless the country
\nadopted an open political system, he added.<\/p>\n
Adi said because Indonesia was pursuing a competitive, market-
\nfriendly, people-oriented economy, it won the approval of the
\nAsia Pacific Economic Cooperation (APEC) forum to establish an
\nAPEC entrepreneurship center in Jakarta.<\/p>\n
\"We are currently conducting a feasibility study and gathering
\nresources needed to realize the plan. Further moves will be taken
\nat the APEC ministerial meeting in New Zealand next month.\"<\/p>\n
He said the center would provide, among other things, business
\nconsultations, market information, programs to improve human
\nresources and access to financing. (gis)<\/p>",
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"sponsor_url": "https:\/\/okusiassociates.com"
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