Businesses want CGI to help fix investment climate
Businesses want CGI to help fix investment climate
Rendi A. Witular, The Jakarta Post, Jakarta
Business communities urged the Consultative Group on Indonesia
(CGI) to push the government to focus immediately on improving
the country's investment climate in order to attain sustainable
economic growth.
National Economic Recovery Committee (KPEN) chairman Sofjan
Wanandi told The Jakarta Post that it was now imperative for the
CGI and the government to fix the investment climate, encouraging
the real sector to drive economic recovery.
"We want the CGI and the government to focus on improving our
unfavorable investment climate so that our economic growth will
not depend anymore on a consumer-driven base, which is
unsustainable," he said.
Sofjan and other business representatives made the requests on
Wednesday during a luncheon with CGI representatives and several
high-ranking government officials.
Aside from Sofjan, who was representing the Indonesian Chamber
of Commerce and Industry (Kadin), other representatives included
those from the International Business Chamber (IBC), the Jakarta
Japan Club Foundation (JJCF) and the American Chamber of Commerce
in Indonesia (AmCham).
Officials of the country's traditional donor grouping met here
for a two-day annual gathering to decide on a new loan
commitment to help finance the 2004 state budget.
During the luncheon, business representatives launched several
key issues that had long been denting the confidence of foreign
investors from entering the country.
Kadin, for example, raised a key labor issue, emphasizing the
increasing difficulties companies experienced in dealing with
labor, and the inability of the government -- particularly the
Ministry of Manpower and Transmigration -- to function as a
neutral arbiter in labor disputes.
Kadin also raised concerns over the government's labor
policies, some of which it considered irrational.
The IBC expressed its concerns over the need for legal reform,
as the weak legal system had created business uncertainties.
It also complained about the lack of adequate infrastructure
to support business activities.
Meanwhile, the JJCF focused on tax and customs administration.
One of the points it raised was the lack of transparency in tax
regulations, which had created confusion among taxpayers and tax
collectors in complying with the regulations.
Other issues raised by JJCF was the need for improved
efficiency in customs clearance, reducing smuggling in the import
and export sectors and comprehensive control and coordination
among government agencies in clearance services.
AmCham raised issues in the mining and energy sector,
stressing the lack of competitive policies.
Investment activities in the country have weakened since the
late 1990s financial crisis. Without higher investment
performance, the country's economy could not grow by between 6-7
percent, a level deemed necessary to help resolve the huge
unemployment problem.