Bad regulations must be revised: Andung

The Jakarta Post, Jakarta

Newly appointed Minister of Industry Andung A. Nitimihardja said on Thursday that one of his immediate priorities was to review existing regulations that have hampered the performance of the country's manufacturing sector.

"Not only regulations under my ministry, but also those of other ministries that have affected the manufacturing sector," he said.

He said that this was expected to help attract new investment in the sector, and eventually push the industry to expand and become stronger.

"In the future, we must have a strong industry from upstream to downstream," he said after the swearing-in ceremony.

Industry players have long complained that the current domestic investment climate is not conducive for doing business in the country, and asked the government to scrap red tape, implement tax reform, and improve infrastructure.

According to the Indonesian Chamber of Commerce and Industry (Kadin), the role of the manufacturing sector over the years had weakened due to various problems. While the sector contributed between 10.8 percent to 12 percent to the gross domestic product between 1995 and 1996, it has only contributed an average 3.9 percent to the GDP since the 1997 financial crisis.

Elsewhere, Andung, who was previously a senior official of the Investment Coordinating Board (BKPM), said that he would spend his first days in office meeting the business community, including Kadin, associations and foreign chambers of commerce.

"We will try to attract foreign investors while maintaining existing investment," he said.

Separately, Indonesian Metalwork and Machinery Industries Association (GAMMA) chairman Safiun said that the Ministry of Industry needs to strengthen its role in facilitating and setting the course of the manufacturing sector.

Safiun said that the ministry must work closely, not only with the Ministry of Trade, but also with other ministries, regarding the improvement of infrastructure and the taxation system.

"Building infrastructure would first create new jobs and later serve as a main attraction to lure investors. Only then could the manufacturing sector grow," he said.