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