Bad regulations must be revised: Andung

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.