Non-tariff barriers obstruct economy: Kadin<\/p>\n
JAKARTA (JP): The Indonesian Chamber of Commerce and Industry
\n(Kadin) has blamed non-tariff barriers, such as monopolistic
\npractices, as well as various legal and illegal levies as the
\nmajor problems hampering the country's economy development.<\/p>\n
\"We praise the government's latest deregulation policy issued
\non Jan. 26, which has reduced import tariffs on 428 items.
\nHowever, non-tariff barriers remain untouched,\" Kadin's chairman,
\nAburizal Bakrie, told the press at a fast-breaking gathering here
\nTuesday evening.<\/p>\n
He said non-tariff barriers, including monopolistic practices,
\nare of greater importance than tariff barriers, which have been
\nreduced through a series of deregulatory packages over the last
\ndecade.<\/p>\n
Aburizal said that monopolistic trading practices -- such as
\nthose conducted by the National Logistic Agency (Bulog) for wheat
\nflour, soybeans, sugar and rice trading and by the privately-
\ncontrolled Clove Marketing and Bufferstocking Agency (BPPC) for
\nclove trading -- have an inflationary impact on the economy.<\/p>\n
He said such monopolistic practices are ironical because they
\nare conducted in the era of free trade.<\/p>\n
The labeling of bottled beer, pesticides and fertilizer are
\nalso monopolistic in nature, according to Aburizal.<\/p>\n
He said any legal levies collected through labeling should be
\nbased on a ruling by the finance minister paid directly to the
\nstate coffers.<\/p>\n
Pesticide and beer producers complained recently about the
\ngovernment and local administration ruling requiring them to
\nattach hologram stickers or labels on the containers of their
\nproducts before they can be sold.<\/p>\n
Aburizal said that if Indonesia wants to increase non-oil
\nexports and to reduce its imports, the government has to cut non-
\ntariff barriers, which have produced market distortions and
\nincreased costs.<\/p>\n
To enhance Kadin's participation in solving the country's
\neconomic problems, Aburizal said the chamber has formed a team to
\nstudy recent causes of increased costs, particularly levies.<\/p>\n
He said that Kadin's provincial chapters (Kadinda) have also
\nappointed teams to probe levies which are imposed by local
\nadministrations, while business associations will study matters
\nwhich cause the high-cost economy in business sectors.<\/p>\n
Aburizal said deregulatory measures alone are not capable of
\nreducing illegal levies which are mushrooming in the regions.
\n(kod)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/non-tariff-barriers-obstruct-economy-kadin-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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