Streamlining bureaucracy beats tax incentives: Mar'ie<\/p>\n
JAKARTA (JP): Streamlining bureaucracy is more important than
\ntax incentives in enhancing the competitiveness of local firms,
\nMinister of Finance Mar'ie Muhammad said here yesterday.<\/p>\n
Speaking at the opening of a leadership workshop for
\nexecutives of state-owned firms, Mar'ie suggested instead that
\nany efforts to improve corporate competitiveness be pursued
\nthrough efficiency-driven measures.<\/p>\n
\"Any effort to secure tax exemption will lead to inefficiency
\nbecause tax incentive is a premium to inefficiency,\" Mar'ie
\nnoted, adding that many firms had asked the government for tax
\nfacilities.<\/p>\n
Efficiency<\/p>\n
The first step toward efficiency, he said, is dismantling
\nunnecessary bureaucracy.<\/p>\n
\"A multi-layer organization is already out-of-date; what is
\ngetting more popular in the current era of globalization is a
\nlean organization with a quick policy decision process,\" Mar'ie
\nsaid.<\/p>\n
This organizational principle is not only for business.
\nMar'ie called for government institutions to become more lean so
\nthat they can become more efficient and \"customer-oriented.\"<\/p>\n
\"If the government officials are required to behave like
\nentrepreneurs, so will the executives of state-owned firms,\"
\nMar'ie said.<\/p>\n
Director General of State-owned Firms Bacelius Ruru agreed,
\nsaying that state firms should operate as business entities
\nrather than as agents of development.<\/p>\n
He said that when the government injects new funds into state
\ncompanies in the form of equity shares it is not ordering them to
\ncarry out the government's missions, but rather to improve their
\nfinancial capabilities.<\/p>\n
Because the government is facing financial constraints, it
\nwill become more selective in putting up more capital for state-
\nowned firms, Ruru said.<\/p>\n
In addition, Ruru said, the government will continue to
\nrestructure inefficient state firms and perhaps even merge them
\nso that they will become more efficient and profitable.<\/p>\n
The government recently finished an in-depth study on the
\npossible restructuring of state firms under the Ministry of Trade
\nand Industry.<\/p>\n
However, Ruru declined to go into details. \"It is not ethical
\nfor me to disclose the results of that study now, while the
\ngovernment is still preparing regulations to implement the
\nplanned restructuring.\" (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/streamlining-bureaucracy-beats-tax-incentives-marie-1447893297",
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"sponsor": "Okusi Associates",
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