Economic rulings needed to conform with GATT

Economic rulings needed to conform with GATT

JAKARTA (JP): Indonesia needs to introduce economic
regulations to conform with the new principles of the General
Agreement on Tariffs and Trade (GATT), which will go into effect
early next year, Minister of Justice Oetojo Oesman said.

He told reporters after opening a German-Indonesian law
seminar here yesterday that Indonesia must adapt its economic
regulations to the results of the Uruguay Round of negotiations
on GATT if it wants to take part in world trade.

However, he said the modification of regulations should not go
against the country's sources of law, the five basic principles
of Pancasila and the Constitution of 1945.

The proposed regulation modifications are expected to help
Indonesia take part in international arbitration procedures and
smooth international trade transactions.

German Ambassador to Indonesia Karl Walter Lewalter told
newsmen that the German government expects transparency in
Indonesian's economic system and law assurance in its investment
system.

Oetojo said the government has issued several policies aimed
at improving the transparency of the country's economics system.

The policies include deregulatory measures, reduction of
bureaucratic procedures and privatization of companies, Oetojo
said.

However, Soeharsono Sagir, an economics lecturer of the
Padjadjaran University in Bandung, West Java, said the
government's deregulatory measures still show inconsistencies.

The government's latest measures, stipulated in Government
Regulation No. 20/1994, for example, are contrary to Article 33
of the Constitution.

He said the regulation, which allows foreign ownership in
strategic industries or services, such as seaports,
telecommunications, power, railways, civil aviation, nuclear
power and mass media, also contradicts Law No. 1/1967 on foreign
investments and Law No. 8/1968 on domestic investments. (02)