Speedy help needed for SMEs: KPEN<\/p>\n
Fitri Wulandari, The Jakarta Post, Jakarta<\/p>\n
The National Economy Recovery Committee (KPEN) urged the
\ngovernment to speed up the restructuring of debts owed by small
\nand medium enterprises (SMEs), and to apply tariffs on four
\ncommodities to protect domestic industry.<\/p>\n
KPEN chairman Sofyan Wanandi said on Thursday that the
\ngovernment should pay greater attention to SMEs given their
\nimportant role in speeding up the country's economic recovery
\namid the current global economic slump.<\/p>\n
He said foreign direct investment in the country was expected
\nto slow down in the future as investor confidence declined due to
\nthe collapse of many big corporations worldwide and the legal
\nuncertainties faced by foreign investors now operating in the
\ncountry.<\/p>\n
\"We predict that FDI in Indonesia will be scarce in the
\nfuture. Therefore, we have very limited options for saving our
\nindustry and economy,\" Sofjan told a press conference.<\/p>\n
The KPEN urged the government to speed up the issuance of the
\nplanned presidential decree on SME debt restructuring as many
\nsuch debts were non-performing.<\/p>\n
SME debt restructuring was important for the country's economy
\nas SMEs had proven their ability to weather the economic crisis
\nand to employ huge numbers of people.<\/p>\n
\"The government must pay serious attention to the SMEs because
\nit is these that are really going to save us, particularly as
\nregards employment,\" he said.<\/p>\n
Sofjan referred to a recent statement made by Coordinating
\nMinister for Economic Affairs Dorodjatun Kuntjoro Jakti saying
\nthat the government would issue a decree on the restructuring of
\nSME bad debts in early July.<\/p>\n
Dorodjatun said total SME bad debts amounted to Rp 28.1
\ntrillion (about US$3.2 billion).<\/p>\n
Bank Indonesia has also signed an agreement with the country's
\nbanks for the distribution of a total of Rp 30 trillion in loans
\nto SMEs.<\/p>\n
Aburizal Bakrie, chairman of the Indonesian Chamber of
\nCommerce (Kadin) said that the decree would give the banks a
\nlegal basis for restructuring their SME loans.<\/p>\n
\"The SMEs should be able to run their businesses better and to
\naccess loans,\" said Aburizal, who also attended the press
\nconference.<\/p>\n
In addition, the KPEN also urged the government to set clear
\ncut policies in applying measures to protect four domestic
\ncommodity producers -- those of rice, sugar, soybeans and corn.<\/p>\n
\"We can use quotas, tariffs or whatever else to protect our
\nfarmers. The government should apply these measures, not just
\ntalk about it,\" Sofjan said.<\/p>\n
Over the past few years, imported rice, corn, soybeans and
\nsugar have been flooding the domestic market and threatening
\nlocal producers given their lower prices.<\/p>\n
At present, Indonesia imposes a 30 percent import tariff on
\nrice, and tariffs of between 20 percent and 25 percent on sugar.
\nThere are currently no tariffs on corn and soybeans.<\/p>\n
Recently, the government has said it would apply higher
\ntariffs on the four commodities. A team set up to formulate the
\ntariffs is expected to complete its work next month.<\/p>\n
The KPEN did not suggest any tariff figures.<\/p>\n
However, Sofjan suggested that while such tariffs should
\nbenefit farmers, they should not burden consumers.<\/p>\n
The KPEN further called on the government to enact legislation
\nthat would support the bringing about of a better investment
\nclimate.<\/p>\n
\"The government should produce policies and laws which can
\nprovide stability not only for domestic businesses but also
\nforeign investors,\" Aburizal said.<\/p>\n
He cited the government's policy on wages, which had caused
\nconcern for businessmen and foreign investors.<\/p>\n
However, he said that the coming law on labor affairs, which
\nwas currently being debated in the House of Representatives could
\nprovide fair solutions to the problems.<\/p>\n
\"The law should protect both workers and industry,\" he
\nremarked.<\/p>",
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