Selective regulation needed<\/p>\n
JAKARTA (JP): Bank Indonesia Governor J. Soedradjad Djiwandono
\nsaid the inefficiency in the country's economic activities has
\npartly resulted from excessive regulations.<\/p>\n
Speaking in a seminar on the promotion of small-scale
\nbusinesses in Palembang, South Sumatra, on Saturday, Soedradjad
\nsaid economic regulations should, therefore, be reduced such as
\nthrough the reduction of licensing procedures and requirements to
\nreduce operational costs in the country's overall economic
\nactivities.<\/p>\n
"But it does not mean that the country's economy should be
\nabsolutely freed from regulations or the government's
\nintervention," he was quoted by Antara as saying.<\/p>\n
He said that the government's intervention in managing the
\neconomy is still needed to ensure that the economy is moving in
\nthe right direction.<\/p>\n
Soedradjad said that if a deregulation package causes a
\nnegative impact on the people, the government's intervention
\ncould, for example, be enforced to minimize its negative impact.<\/p>\n
Most of the government's direct intervention is made in
\ndealing with market failures such as when the market mechanism no
\nlonger works, he said.<\/p>\n
He, however, warned that such market intervention should be
\nsupported by transparent rulings so that economic players would
\nalso be informed on the mechanism of the intervention.<\/p>\n
"The rules of the game in the enforcement of the government's
\nintervention should be clear," he added<\/p>\n
In a separate development in Banda Aceh at the northern tip of
\nSumatra, Minister of Finance Mar'ie Muhammad also called for a
\nstronger effort in helping small-scale companies, which generally
\nlack capital and management skills.<\/p>\n
He said that activities of capital ventures should, for
\nexample, be expanded to all parts of the country to give a wider
\ncapital access to small-scale firms, which often face
\ndifficulties in raising credit from banks due to their lack of
\nbusiness skills and collateral.<\/p>\n
"The number of capital ventures should be increased to help
\nsmall economic players," he said in his speech at the opening of
\nPT Sarana Aceh Venture, a capital venture in Aceh.<\/p>\n
Breakthroughs<\/p>\n
He considered the establishment of capital ventures in the
\ncountry as one of the important breakthroughs in helping small-
\nscale businesses.<\/p>\n
Bahana Artha Ventura, the state-owned capital venture, has
\nestablished, at least, 10 capital ventures in provinces in
\ncooperation with local businessmen.<\/p>\n
The already operating capital ventures include PT Sarana Jabar
\nVentura in West Java, PT Sarana Sumut Ventura in North Sumatra,
\nPT Sarana Jatim Ventura in East Java, PT Sarana Yogya Ventura in
\nYogyakarta, PT Sarana Jateng Ventura in Central Java, PT Sarana
\nBali Ventura in Bali, PT Sarana Sumatra Selatan Ventura in South
\nSumatra, PT Sarana Sumatra Barat Ventura in West Sumatra and PT
\nSarana Lampung Ventura in Lampung.<\/p>\n
Mar'ie said the government would also soon introduce another
\nbreakthrough to further speed up the development of small-scale
\nbusinesses in the country.<\/p>\n
He, however, refused to elaborate the planned breakthrough.
\n(hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/selective-regulation-needed-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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