Govt to issue deregulation package in June

JAKARTA (JP): The government has decided to wait until next month to announce a new package of deregulation measures aimed at preparing Indonesian industries for the global market, a senior minister said yesterday.

"We never promised to launch the new deregulation measures this month. For sure we will issue them next month," Coordinating Minister for Production and Distribution Hartarto said yesterday.

Hartarto said the forthcoming measures have nothing to do with Indonesia's plan to liberalize trade and investment in connection with the Asia Pacific Economic Cooperation forum.

"We have prepared our action plan. But this planned deregulation has nothing to do with the action plan," Hartarto said.

Minister of Industry and Trade Tunky Ariwibowo said earlier that the deregulation package will include fiscal measures related to the value added tax as well as monetary measures, particularly the processing of local and discounted letters of credit.

The package will also simplify the processing of export and import documents to improve the performance of commodity exports, including textiles, electronics and wood products.

The last package, announced in January, eased restrictions and tariffs, duties and taxes on the importing of goods for export industries, opened up export trading services to foreign firms and cut certain export levies.

Hartarto said the government is committed to cutting import tariffs and abolishing non-tariff barriers to improve the competitiveness of the country's economy.

When asked about doubts regarding government policy consistency, especially after the granting of special tax and tariff breaks to a local auto firm, Hartarto reiterated that Indonesia would remain consistent in its economic reform policy.

"We are consistent... We have consistently but gradually lowered import tariffs on some 13,000 commodities. It is true that a number of commodities are still protected but they are not many," Hartarto told journalists after a briefing on the two-day Indonesia Summit that begins today.

Hartarto said the summit is expected to promote Indonesia and attract more foreign investment.

The summit, to be opened by President Soeharto this morning, will feature 11 cabinet ministers, local and foreign business leaders and a number of foreign dignitaries.

The first day of the summit will present such noted speakers as Hartarto, World Bank President James D. Wolfensohn, Chinese Vice Premier Zhu Rongji, Minister of Investment Sanyoto Sastrowardoyo, Chairman of Peregrine Investments Holdings Ltd. Philip Tose, Chairman of Ssangyong Business Group Suk Joon Kim and Dutch Minister of Economic Affairs G.J. Wijers. (rid)

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