Eradicating levies made by private parties

Eradicating levies made by private parties

The courage which the governor of Bali has shown by annulling
the appointment of PT Arbamas Mukti Investico as the sole
supplier of beer and other alcoholic beverages for the island
deserves to be commended. The action -- for whatever reason it
was taken -- not only shows Governor Ida Bagus Oka's sensitivity
to the opinion of the people, it also shows that he has the
courage to correct policies that are improper.

Such courage to correct these mistakes represents a fine and
laudable attitude. It requires a certain strength to confront the
external intervention of parties with links to power and to
convince those who are making personal gains from the deal to
stop.

The core of the problem with the beer stickers in Bali was
that it involved levies made by private parties under the cover
of government regulations. Other examples abound. A similar
situation existed in the textiles trade. In ports certain
vouchers were required. In the provinces, too, several cases
occurred such as the one concerning the ebony wood trade in
Central Sulawesi, the orange trade in West Kalimantan, the pumice
stone trade in West Nusa Tenggara and many more.

Such policies create an unhealthy climate. They are no
different than extending monopolies in other cases. Aside from
granting huge profits to those who are given the special rights,
they also create harmful distortions. Producers are not free to
sell their products, while consumers also lose because the prices
of the commodities are usually higher.

Such cases have been going on for many years and the consumers
are the losers. Lately, perhaps, certain pressures have emerged
which compel the government to take stricter action to eradicate
levies, especially due to the listlessness in our export trade
which threatens the healthy balance of our state finances.

The government, however, should be unhesitating in its
actions. Aside from eradicating levies, an even more important
step to take is to free our national economy from the various
existing trade controls and monopolies. The betterment of our
national economy clearly needs a more open atmosphere to make it
more competitive and efficient.

-- Bisnis Indonesia, Jakarta