Govt continues to get criticized over performance
Govt continues to get criticized over performance
The Jakarta Post, Jakarta
The first 100 days of President Susilo Bambang Yudhoyono's
administration have passed. But criticism of his government
continues unabated, with most considering that he had so far
failed to improve the country's investment and business climate.
"The government has put the direction of its economic policy
into its 100-day program and National Medium-term Development
Plan (RPJMN). But can the program and the plan accomplish the
vision and mission of the President and Vice President and solve
the people's economic problems?" asked Aviliani of Tim Indonesia
Bangkit (Indonesia Awakens Team) in a discussion on Wednesday.
She said that government programs and policy during the first
100 days did not demonstrate any of the changes promised by the
state leaders during their election campaign.
Another speaker at the discussion, Fadhil Hasan, said the 100-
day program was only a compilation of routine programs proposed
by ministries and other government institutions.
In its report, the team said that during the first 100 days
the government should have established a stronger base for an
improvement in tax collection, a reduction in debt burdens, and a
contraction in spending, as mentioned in the President's vision
statement.
Some critics also highlighted the government's failure to
settle a number of high-profile disputes with foreign investors
such as Mexican cement giant Cemex SA's case against state-owned
PT Semen Gresik, the Karaha Bodas Company (KBC) case, and a row
between state firm Pertamina and ExxonMobil over the Cepu gas and
oil field.
Fixing these matters would automatically improve the nation's
investment climate.
Another team member, Binny Buchori, told the discussion that
the government was also weak in establishing strategies in
development planning.
"The development plan, for example, does not mention any plan
on the privatization of state enterprises, but it presumes a
revenue worth of between 0.1 and 0.2 percent of Gross Domestic
Product (GDP) from privatization," she said.
The RPJMN also indicated that the government, in financing
development projects, would not try to pan more revenue from
domestic sources other than taxation, such as profits from state
enterprises, but it prioritized revenue from foreign loans, she
said.
She said the government had projected revenue of about 0.7 to
1.2 percent of GDP from foreign loans.
Efficiency in state enterprises could actually help increase
non-tax domestic revenue, she added. (004)