President backs war on levies<\/p>\n
JAKARTA (JP): President Soeharto yesterday gave his full
\nbacking to Minister of Manpower Abdul Latief's plan to phase out
\nvarious business levies charged by his ministry, and suggested
\nthat other government agencies should follow suit.<\/p>\n
Speaking after meeting the head of state, Latief announced
\nthat his ministry was prepared to abolish 17 levies from next
\nmonth, to help Indonesian businesses become more competitive in
\nthe global market.<\/p>\n
The minister, a former businessman himself, said Indonesian
\ncompanies have been saddled by too many official, as well as
\nunofficial, levies.<\/p>\n
He said even the President considered the move to phase out
\nthe levies as courageous.<\/p>\n
\"The President said we have to be bold. Every department must
\neliminate levies which have no bearing on production,\" he said
\nafter the meeting.<\/p>\n
Latief said his efforts will not stop there. He plans to seek
\nthe help of Minister of Home Affairs Moch. Yogie S.M. to phase
\nout manpower-related levies imposed by provincial
\nadministrations.<\/p>\n
The move is part of an overall effort to eliminate factors
\nwhich contribute to high costs of production.<\/p>\n
\"If all departments can do this, and the President said we
\nhave to be brave and do it, then many things can be accomplished
\nand many more become brisk and good,\" he said.<\/p>\n
Latief said that if he kept repeating the words brave and
\ncourageous yesterday it was because the President also repeatedly
\nstressed the need to have courage.<\/p>\n
He said it was not just official levies which should be
\nabolished but also the unofficial ones. He contended that hidden
\nlevies are absorbing more money than official ones.<\/p>\n
\"The actual amount collected isn't much,\" he said of the
\naccumulative official levies at the Ministry of Manpower. \"It
\ndoesn't go over Rp 2 billion (US$869,500) a year. But it is
\nusually the unofficial ones which are much higher than the
\nofficial ones.\"<\/p>\n
Latief said he had also been instructed by the President to
\nconvey the need to reduce levies to other ministries.<\/p>\n
Dialog<\/p>\n
The President also supported the open dialog he launched with
\nmembers of the Indonesian Chamber of Commerce and Industry
\n(Kadin), which helped raise awareness of this issue, and added
\nthat if necessary he too will get involved.<\/p>\n
When pressed by journalists on the question of raising the
\nmeager salary of civil servants, often identified as the catalyst
\nof these unofficial levies, Latief said it was still under
\nconsideration.<\/p>\n
The government is currently deliberating with the House of
\nRepresentatives on whether to raise civil servant wages for the
\n1996\/1997 fiscal year and if so by how much.<\/p>\n
Latief also reported that Jakarta and Kuala Lumpur have
\nreached an agreement on the protection of Indonesian housemaids
\nworking in Malaysia.<\/p>\n
Under the deal, servants would be guaranteed one day off a
\nweek and other amenities relating to their protection.<\/p>\n
Indonesia is planning to enhance the skill of the workers, by
\ntraining them before they left.<\/p>\n
\"We can train them how to use a washing machine, iron a silk
\nshirt and how to take care of a baby,\" he said.<\/p>\n
For this training the president has consented to the
\npossibility of providing bank credits of up to Rp 3 million so
\nthe workers can enlist in the government classes.<\/p>\n
\"We'll discuss the interest with Bank of Indonesia. We're
\nasking them if possible to give us 12 percent,\" Latief explained.<\/p>\n
He estimated that Indonesian workers could return with up to
\nRp 10 million after one year in Malaysia. Latief quickly pointed
\nout the potential for helping the village economy if those
\nworkers go home with their savings.<\/p>\n
Speaking of the Idul Fitri bonuses which workers here will
\nreceive, Latief called on people not to spend their money hastily
\non frivolous items, but to save it for future needs.<\/p>\n
With a workforce of some 30 to 40 million receiving at least
\nan extra month's salary for their bonus, the additional amount of
\nmoney in circulation is expected to reach Rp 4 trillion to 4.5
\ntrillion. (mds)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/president-backs-war-on-levies-1447893297",
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