Businessmen seek abolishment of invisible costs

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)