Govt should deregulate real sectors: Economist

Govt should deregulate real sectors: Economist

JAKARTA (JP): An economist suggested yesterday that the
government further deregulate the real sectors (of production and
distribution) to adjust them to current macroeconomic policy.

Dorodjatun Kuntjoro-Jakti, an economist at the University of
Indonesia, said after meeting with President Soeharto yesterday
that improvements in the two sectors will complement the
country's liberalization drive.

He said he agreed with the director of the World Bank's
Jakarta office, Dennis de Tray, and his statement that Indonesia,
since the deregulation measures taken in June, has become the
most liberal country in Southeast Asia.

"I think we have taken quick steps at the macroeconomic level
and need support from the real sectors, which need to be
deregulated," Dorodjatun noted.

Dorodjatun said recently that he was surprised that the new
deregulation package, announced on June 4, did not cover service
sectors such as airlines, shipping and land transportation.

"In the next economic reforms, I hope the government will
deregulate more of the real sectors, including services," he
said.

Dorodjatun said yesterday that one of the most positive
aspects of the new package is the establishment of the anti-
dumping body, which is chaired by Minister of Finance Mar'ie
Muhammad and Minister of Industry and Trade Tunky Ariwibowo.

He noted that the next task for the country will be to reduce
the non-tariff barriers still present in international trade
practices.

"We see that disguised protections appear in many
requirements, including the local content requirements and
dumping allegations which have complicated international trade,"
Dorodjatun said.

"So far we have seen many accusations of dumping coming from
developed countries rather than developing countries. So it is
completely right for us to form this anti-dumping body," he
added.

He suggested that the body include not only industrial experts
but also skilled lawyers, given the complexity of issuing and
rejecting dumping charges.

In yesterday's meeting with Soeharto, Dorodjatun accompanied
Bustanil Arifin, A.R. Ramly and Muchtar Mandala, who are all
members of the APEC Business Advisory Council (ABAC) -- the new
name of the Pacific Business Forum (PBF). Dorodjatun, who was a
PBF advisor, is now an ABAC advisor.

Bustanil said that ABAC's main duty is to advise leaders of
the Asia Pacific Economic Cooperation (APEC) forum, who will
convene for the fourth time in Manila later this year, with
respect to private sector concerns.

He noted that his party has conducted a series of meetings
with representatives from the private sector, including the
Indonesian Chamber of Commerce and Industry, leading tycoons such
as Anthony Salim, Prajogo Pangestu, Ibrahim Risjad, James Riady,
Sofyan Wanandi and the Forum of Business Associations.

"When we collected input from them for the next ABAC meeting
in Manila (June 14 to 16), most of them complained about domestic
issues. They suggested that domestic matters be solved before
international ones," Bustanil said.

When asked about the complaints, Bustanil said, "We explained
them to Bapak (Soeharto), but not to you. They are mostly petty
problems," (rid)