Industry's global mart role boosted

JAKARTA (JP): The government is fully committed to providing support for the country's industry to play a larger role in the global market, President Soeharto said yesterday.

"In this second long-term (25-year) development plan period, we are determined that our economy and industry begin to carry weight on the global level, with a dependable competitive edge and productivity," Soeharto told the opening of the Indonesia Summit 1996, a two-day international economic seminar here.

He said that in the second 25-year development plan period, which started in April 1994, the government will continue to improve the country's industrial structure, while at the same time strengthening the agricultural sector.

The government will also accelerate the development of infrastructure and human resources to support economic dynamism.

"We especially give a high priority to the development of infrastructures, including facilities for transportation, public works, telecommunications and energy, which are very important to sustain our industrialization process," Soeharto said.

He noted that the government is also intensifying efforts to mobilize funds through capital markets, banks, venture capital firms and mutual funds, to finance the country's investment needs.

"For this purpose, we continue to enhance the business climate by improving legislation on capital market institutions, raising the efficiency of the banking system and financial institutions as well as adopting firm policies on micro levels," Soeharto said.

The President also said the government will continue to accord a greater role to the private sector in the country's development, while it serves as an active facilitator.

The government will also continue to maintain a macro-economic balance, policy consistency and political stability as these serve as fundamental prerequisites for development sustainability.

It will also continue with its deregulation and reduction of bureaucracy to improve the country's efficiency and competitiveness.

The President stressed that Indonesia will maintain an open attitude toward everything positive and constructive from the outside world as cooperation with other nations is one of the country's development principles.

"Obviously, we are not trying to become self-sufficient as a kind of autocracy or an isolationist state. Not only will both deprive us from benefiting from the progress of mankind but they are also inconsistent with our national objectives," he noted.

Liberalization

Concurring with Soeharto's view, Coordinating Minister for Production and Distribution Hartarto said Indonesia will continue to actively pursue multilateral trade and investment liberalization through open regional groupings such as the Association of Southeast Asian Nations (ASEAN), the Asia Pacific Economic Cooperation (APEC) forum and the Asia-Europe Meeting.

"The facilitation and liberalization of trade and investment will reduce trade barriers that have long-obstructed Indonesian efforts to increase exports to some of industrialized countries," Hartarto noted.

Hartarto said Indonesia will serve as an efficient production site for those who want to enter the huge and promising ASEAN, APEC and also global market.

"The fact that Indonesia's total trade with all other ASEAN countries and most APEC economies has long been in favor of Indonesia should ensure the advantage of using Indonesia as a gateway to enter ASEAN, APEC and the global market," he said. Sustainable Development: Indonesia's Experience, yesterday shared both Soeharto's and Hartarto's views on Indonesia's economic performance.

"I have visited over 35 countries, and the yardstick I apply is: what's going on in a country. And the remarkable thing about Indonesia is the commitment of the government and the capacity to deliver," Wolfensohn remarked.

Sustainability

He said there are four significant elements to measure sustainability of a country's development, namely human resources development, infrastructure development, the functioning of financial system and management of the environment.

"I think in terms of fundamentals of this country, the government has macro-economic plans, it is dealing with human development, it is dealing with education, it is dealing with thefinancial sector, it is dealing with infrastructure and it is ever-increasingly dealing with the issues of the environment," he added.

"If you are a bank president or a private investor, those are essential elements in the development process and they speak of sustainability," he added.

The Indonesia Summit 1996, conducted jointly by the Indonesian government and the daily International Herald Tribune and attended by some 600 foreign and local executives, aims to promote Indonesia and its products and attract more foreign investment.

In addition to Hartarto and Wolfensohn, other speakers yesterday included State Minister of Investment Sanyoto Sastrowardoyo, Chinese Vice Premier Zhu Rongji, Dutch Minister of Economic Affairs G.J. Wijers, Chairman of Peregrine Investments Holdings Ltd. Philip Tose and Chairman of Ssangyong Business Group Suk Joon Kim.

Today, the summit will feature eight cabinet ministers, a number of both foreign and local business leaders as well as foreign dignitaries, including Australian Deputy Prime Minister/Minister of Trade Tim Fisher and Special Advisor to the Prime Minister of Canada on International Trade Roy MacLaren. (rid)

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