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)