Businessmen seek abolishment of invisible costs

JAKARTA (JP): Indonesian businessmen are saying they are committed to paying their workers the minimum wage, but if the government doesn't take steps to improve business conditions, they could loose their viability internationally.

Husen Aminuddin of the Indonesian Chamber of Commerce and Industry (Kadin) said Thursday "we need to reduce the other components of our production costs to remain competitive on the international market and to that end the government should see to it that the lending rates decrease and the invisible costs of doing business are abolished."

Aminuddin, who just returned from New Delhi as a member of the Kadin delegation to the business forum of the Group of 15 Developing Countries, said while improvements in worker rights have been made, there are other areas that still need help.

Indonesian Ambassador to the United States Arifin M. Siregar said at a business luncheon at the Mercantile Club on Thursday that the government had significantly improved the protection of workers rights.

The business luncheon, attended by Indonesian and American businessmen, was hosted by Tony Agus Ardie, Chairman of the Kadin U.S. Committee.

The improvements, he added, are responsible for the U.S. government's recent decision to suspend the review of Indonesia's inclusions on the Generalized System of Preferences until August.

Intervention

Arifin, who is here to attend a working conference of the foreign ministry, recounted the recent government decisions to raise the minimum wage and minimize military intervention in labor strikes.

Aminuddin, however, reiterated the urgent need to minimize what he called the invisible costs of doing business in the country which are related to regulatory procedures.

Without reduction in the invisible costs and lending rates it would be difficult for Indonesian exporters to compete on the international market, he said.

Aminuddin also saw improvement in the business climate as more urgent, especially because Kadin will host the first APEC business forum in August.

The forum will be held three months before the second informal summit of the 18-member Asia-Pacific Economic Cooperation forum in Jakarta which will be chaired by President Soeharto.

"The forum will obviously be very important because it is the business community that will provide substance to APEC programs," Aminuddin added.

The governments of APEC members provide a policy framework and a level playing field while the actual players will be businessmen, he said.(vin)