Free market and competitiveness

Free market and competitiveness

From Koran Tempo

The Indonesian Chamber of Commerce and Industry (Kadin) has proposed that the government reduce taxes for the mining sector.

"This is important to maintain the nation's competitive edge in the international arena," the chairman of the permanent committee for domestic development at Kadin, Herman Afif Kusumo, said here recently (Tempo Interaktif, March 12).

The ongoing economic crisis has for the past six years not only worsened our economic condition, but has also chipped away our confidence in facing the liberalized market. Recently, there have been demands for stronger protection and also for a slowing of economic liberalization. The main argument often put forward is that we are not ready for economic liberalization!

The globalization era cannot be stopped; neither can it be turned back. What is most important today is that we should get ourselves ready to improve our competitive edge. We should not close ourselves off to the outside world and protect our domestic market, or even slow down the realization of economic globalization toward the liberalized market.

Productivity is the main factor for a nation. We often believe that low wages will make our country more competitive than other countries. This is true only for a very short time. A competitive edge based on low wages cannot be maintained.

PEBRIJANA SUNARDI Jakarta