SBY's 100-day program gets thums-up<\/p>\n
The Jakarta Post\/Jakarta<\/p>\n
While details remain sketchy, the newly unveiled 100-day national
\neconomic program has apparently met the expectations many people
\nhave, by showing that the government literally means business
\nwhen it comes to improving the country's investment climate and
\neconomy.<\/p>\n
Economist Pande Radja Silalahi of the Centre for Strategic and
\nInternational Studies (CSIS) and Indonesian Employers Association
\n(APINDO) chairman Sofyan Wanandi expressed their optimism that
\nthe program provided a sound basis for developing policies that
\ncould cure the country's economic ills.<\/p>\n
\"The direction is there, be it on tax reform, fiscal and
\nmacroeconomics consolidation, and others. There's still a long
\nway to go, but at least (the program) shows clear signs as to
\nwhere the new government and its policies are headed,\" Pande said
\non Sunday.<\/p>\n
The government announced last week its to-do list for its
\nfirst 100 days in office that highlights the need for further tax
\nreform -- among others -- in annulling certain regulations that
\nare deemed detrimental to the nation's business climate.<\/p>\n
The revocation of luxury tax imposed on non-alcoholic
\ncarbonated drinks and value-added tax (VAT) on heavy machinery or
\nequipment for the mining industry, for example, are high on the
\nlist.<\/p>\n
Additional plans to introduce tax amnesty for long-time tax
\nevaders are also being considered, under which the government
\nwould throw out all criminal charges in return for a calculated
\nfine in a kind of bail-out scheme.<\/p>\n
Pande said in principle, the measures in the program reflected
\nthe business community's needs and requests, and thus indicated
\nthe government's commitment to improving the business climate and
\nso boosting economic activities.<\/p>\n
Still, the program was lacking in details, he added.<\/p>\n
\"As regards tax amnesty, for instance, how is the government
\ngoing to do this? It requires a massive, coordinated effort among
\nstate institutions... Not to mention it will need a law on the
\nissue, which means it would be impossible for the government to
\naccomplish in its first 100 days,\" Pande said, adding there was
\nno guarantee such a legislation would be passed within such a
\nshort time.<\/p>\n
APINDO chairman Sofyan, who also heads the powerful business
\nlobby the National Economic Recovery Committee (KPEN), also
\nhailed the planned revocation of rulings that discouraged
\nbusiness.<\/p>\n
\"Amending the decrees and bylaws alone would help solve 60 to
\n70 percent of the problems faced by businesses here, and would
\neventually attract investment,\" Sofyan said, adding that some
\nparts of the economic program followed the recommendations made
\nin the trade and investment road map prepared by the Indonesian
\nChamber of Commerce and Industry (Kadin) and the KPEN.<\/p>\n
\"In short, I don't believe that the government would not
\nimplement our recommendations, as among SBY's aides are men and
\nwomen who were involved directly in drawing up the road map,\"
\nsaid Sofyan, referring to former Kadin chairman Aburizal Bakrie,
\nMari Elka Pangestu and Fahmi Idris, who now sit in President
\nSusilo Bambang Yudhoyono's Cabinet as Coordinating Minister for
\nthe Economy, Minister of Trade and Minister of Manpower and
\nTransmigration, respectively.<\/p>\n
Sofyan said the business community had recognized the need for
\na control mechanism and were forming a team to monitor the
\nimplementation of the 100-day program, comprising local business
\nplayers and representatives of foreign trade chambers, as well as
\nnoted economists such as Hadi Soesastro and Faisal Basri.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/sbys-100-day-program-gets-thums-up-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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