Govt to issue deregulation package in June
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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