Govt intent on correcting high cost economy
Govt intent on correcting high cost economy
JAKARTA (JP): Coordinating Minister for Production and
Distribution Hartarto assured a delegation of American business
executives yesterday that the government would continue to pursue
liberalization, prudent policies and cut down economic costs.
"We will continue to eliminate the bottlenecks which have
created a high cost economy," Hartarto told the 20 corporate
executives at a luncheon here yesterday.
He said the government would continue improving its prudent
economic policies "for the next several decades".
Hartarto was speaking during a luncheon organized by the
Indonesian Chamber of Commerce and Industry's American section to
honor the visiting business delegation.
The business executives represented 11 American multinational
corporations looking for Indonesian partners to enhance business
ties between the two countries.
Among the U.S. companies represented by the executives were
the American International Group, American Express, Bank of
America, the Chubb Corporation, General Electric, Goodyear,
McDonald's, Samsonite and the Oracle Corporation.
Hartarto strongly urged the companies to examine the
possibilities of making investments in Indonesia and forging a
synergy with Indonesian companies.
The delegation's visit here falls under the banner of the
U.S.-ASEAN Council. The Council will hold a dialog with senior
officials of the Association of Southeast Asian Nations (ASEAN)
in Bali tomorrow.
ASEAN is a socioeconomic organization which is comprised of
Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand
and Vietnam.
Attractive
Speaking to journalists, several of the executives later
commended the steps taken by the government to create an
increasingly attractive market.
Stewart Dean, the resident representative of General Electric,
said the business climate in Indonesia has improved, especially
in the past three years.
"Indonesia is very competitive in Southeast Asia and all of
Asia," Dean said when asked to assess the business climate here,
while adding that the government is doing the right thing in its
policies to deregulate the economy.
Raymond M. Cesca, an executive of the McDonald's food
franchise company, expressed his appreciation that Indonesian
government officials are seemingly open to suggestions for
improving the business climate.
"They actually solicit your input," he claimed.
However, the president of the U.S.-ASEAN Council, Ernest
Bower, said that investment relation between the two countries is
"not at an optimum level right now."
He noted that while Indonesia has much potential as a market,
deregulation must be continued.
Russ Soh Long Shu of the Chubb Group of Insurance Companies
said that despite the recent deregulations, his company still
found itself limited in some ways and urged liberalization in the
financial sector.
Meanwhile, Lauren Lenfest, Oracle Corporation's director of
international trade, suggested that the government address the
issue of protecting intellectual property rights. (mds)