Eliminating levies

Eliminating levies

The problem Indonesian businesspeople complain most about is the countless and burdensome levies. The levies, both official and unofficial, occur at virtually all government agencies. This results in a high-cost economy that weakens the competitive standing of our products and creates a climate of gross inefficiency.

The levies, which are not related to production, also affect foreign investors. It is therefore logical that when foreign trade attaches met with Minister of Industry and Trade Tungky Aribowo in Jakarta on Wednesday, they and members of foreign business associations brought up the problem again.

The levies appear closely related to the matter of licensing. It is therefore practically impossible to completely eliminate the problem, especially with regard to licenses that are issued on the basis of government regulations, including at the provincial level. Nevertheless, reducing the levies to a reasonable levels is necessary, especially in cases which concern production.

Eliminating levies should be accompanied by tight controls because the matter is bound to somehow affect the incomes of certain people. An open attitude on the part of government officials and private businesspeople is desirable in order to create a climate of transparency.

Pruning these levies will give us hope that we will truly be ready to enter the new era of free trade -- an era full of uncertainties.

-- Bisnis Indonesia, Jakarta