Industry's global mart role boosted

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)

Investment -- Page 9