Indonesian Political, Business & Finance News

Fighting levies is a tough job: Ginandjar

Fighting levies is a tough job: Ginandjar

JAKARTA (JP): A senior official has called on the public not
to expect too much from the recently launched campaign against
official levies, given the lengthy and arduous bureaucracy
involved.

State Minister of National Development Planning/Chairman of
National Development Planning Board Ginandjar Kartasasmita said
yesterday in a discussion that the private sector, the public and
non-governmental organizations (NGOs) should be in the front line
of the campaign which was originally initiated by the Ministry of
Manpower.

"I fully support the fight against unnecessary levies," he
said at a forum attended by Manpower Minister Abdul Latief and
members of the Indonesian Chambers of Commerce and Industry
(Kadin). "But don't expect too much...this is going to be a very
lengthy process."

He pointed out that the bureaucracy usually takes a long time
to make changes. "Our bureaucracy won't change for a long time.
Change will come gradually," he said.

Given the foot-dragging nature of the bureaucracy, he said,
it's the public, the private sector and the NGOs that should do
more. He admitted that was a tall order, saying "the private
sector is afraid to initiate the campaign to put order into our
bureaucracy".

"They should be more outspoken, they should fight for the
campaign," he said.

President Soeharto recently gave his endorsement to the
manpower ministry's plan to scrap 37 levies currently imposed on
manpower administration. He also urged other official agencies to
follow suit and local administrations to revoke their regulations
on levies which create market distortions and hamper economic
growth.

A meeting between government officials and business people is
to be held at the ministry of manpower on Monday to address the
problems of levies.

To be chaired by Coordinating Minister for Production and
Distribution Hartarto, the meeting is a follow-up to the previous
meeting between Latief and leaders of the chamber of commerce
earlier this month.

Latief yesterday particularly stressed the importance of the
campaign to reduce the amount of levies in an effort to increase
workers' salaries and improve civil servants' welfare.

"Corruption in the form of 'unofficial fees' makes it
difficult for us to increase wages," he said.

He called on the members of Kadin to launch "a movement of
non-payment".

"Just say no," he suggested.

Kadin chairman Aburizal Bakrie again expressed support for the
campaign against corruption which, he said, imposes a great
burden on businessmen. "Levies affect our competitiveness in
overseas markets," he said.

Meanwhile, in Semarang, Central Java, two economists at Gadjah
Mada University suggested that government agencies fight bribe-
taking by trimming bureaucracy and centralizing office
procedures.

Nopirin and Anggito Abimanyu were in agreement of the need to
introduce a "one-stop" business administration.

Nopirin cited Vietnam as an example of a country which has
been able to boost economic growth by curtailing red-tapes.
"Investors there, for instance, go to one single office to deal
with various bureaucratic matters," Nopirin said.

Anggito agreed with Minister Latief, saying that the
businessmen should have the courage to refuse demands for bribes.
(31/swe/har)

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