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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