Businesspeople concerned by govt economic performance

The Jakarta Post, Jakarta

Businesspeople in the Jababeka Industrial Estate in Cikarang, West Java, have expressed concern over the government's failure to tackle smuggling and bureaucratic red tape, or to reform tax regulations, which have hurt their businesses.

During a meeting on Wednesday with President Susilo Bambang Yudhoyono, the chairman of the Indonesian Apparel Manufacturers Association, Vince Gowan, asked the government to take more seriously the problem of smuggling, which he said disrupted supplies and prices in the domestic market.

"The war against smuggling should not be declared today and carried out over the next three months. It should be waged now and forever," he said.

Vince, who is also the Indonesian Chamber of Commerce and Industry's vice chairman for productivity, also expressed concern over the country's high-cost economy -- caused by illegal fees imposed by central government and regional administration officials -- which has harmed the competitiveness of locally made clothing products in overseas markets.

"It is also difficult for us to divert and sell our products in the domestic market because it has been swamped with the smuggled products that we are complaining about," he said. "We expect the government to take action to resolve this problem and not just give us lip service."

Singaporean businessman Stanley Lee highlighted the existing problems in Indonesia's tax regulations, citing how many tax officials were in the habit of interpreting the regulations according to their own preferences.

"When the regulation does not actually fit (their interpretation), it results in the impression that they (the tax officials) are just trying to blackmail taxpayers and that there is no legal uncertainty in the country," he said.

Responding to the criticism, Susilo highlighted a number of his administration's economic success stories.

"The government is at present trying to reduce the high-cost economy," he said. "If you continue to face problems dealing with government officials in the bureaucracy, please report it to me."

Regarding the issue of smuggling, Susilo said the government had been consistent in waging a total war against the crime.

In his first year in power, he said, the government had achieved much economic progress, including a 24 percent increase in non-oil exports the growth of total investment from US$1.7 billion to $8.4 billion as of August.

"It is the right time for investors to come back to Indonesia, as we have shown our resilience in overcoming the many problems we faced, including the recent tsunami and the terrorist bombings," he said. "It is the resilience of our nation that foreign investors can count on."