Kadin asks for govt help in facing free trade

Kadin asks for govt help in facing free trade

The Jakarta Post, Jakarta

The Indonesian Chamber of Commerce and Industry (Kadin), the
country's largest business lobby group, urged the government to
help local firms in dealing with tighter competition resulting
from the free trade era.

Kadin chairman Aburizal Bakrie stressed on Thursday that
without government support, efforts to restore the country's
ailing economy would become more difficult.

"The business sector cannot play an optimum role without the
support and constructive role of the government," Aburizal said
during a speech on the last day of Kadin's three-day congress,
which was also attended by President Megawati Soekarnoputri.

He fell short of saying, however, whether the government
should impose protective measures to help local firms in facing
competition from foreign players in the domestic market.

The theme of the congress was: "Restoring the national economy
by winning the domestic market."

A number of business leaders had earlier asked the government
to protect the domestic market against an influx of foreign
products and services as many local players were not yet ready to
deal with the free trade era.

They argued that without government protection, particularly
amid the current global economic slowdown, many industries would
go bust, thus creating more unemployment.

Elsewhere, Aburizal said that the basic conditions necessary
for a recovery by local industry were not yet present. He did not
elaborate.

But businessmen had earlier said that the current high
interest rate environment made it difficult for them to obtain
bank loans at affordable rates.

They also said that the government should accelerate the
restructuring of corporate debt to allow banks to resume lending.

Aburizal also claimed that the government's policy of
revitalizing the real sector had not been consistent and lacked a
clear focus.

Meanwhile, Megawati urged local businesses to start seeking
projects and financing outside those provided by the government.

She said in her speech that businesses must be aware of the
reality that the state budget could not longer serve as the
locomotive of the economy.