Improve our competitive standing

The decline of our national competitive standing is without doubt something we must try to overcome. In his speech at the opening of the Association of Indonesian Economists (ISEI) congress in Medan yesterday (Thursday), Finance Minister Mar'ie Muhammad disclosed that Indonesia this year ranks 41st among 45 countries listed by the World Bank on the basis of their competitive standing. This means that Indonesia is dropping further and further behind other countries, since last year this country was ranked 33rd among the 44 countries listed.

What can we do to improve our competitiveness? Mar'ie Muhammad suggests that the government lessen its intervention in economic matters. Obviously this does not mean that it should relinquish its control altogether, but it should abstain from intervening in those economic sectors where conflicts of interest are likely to occur. "Any act of intervention that is not actually needed will have an impact where the negative outweighs the positive," Mar'ie Muhammad said.

The minister, who was at one time an activist of the Islamic Student Association (HMI), called on economists working in government and in the private sector to observe morals and ethics in their daily dealings. This, he said, would spur the emergence of a climate of good governance and fair business practice, which in turn would improve our competitive rating.

One way of achieving this is by increasing transparence in all sectors of public life. In anticipating the dawning of the free trade era the government should strive to persuade all our economic players to adopt sound business practices and practice fair competition.

-- Media Indonesia, Jakarta