Improve our competitive standing

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