Kadin: Deregulation still inadequate

Kadin: Deregulation still inadequate

JAKARTA (JP): The Indonesian Chamber of Commerce and Industry
(Kadin) considers the deregulatory measures introduced by the
government last month to be inadequate for improving the
competitiveness of Indonesian products overseas.

"The government should follow last month's deregulatory
measures with new ones that have more comprehensive coverage and
a reduction of bureaucratic procedures," Kadin's chairman,
Aburizal Bakrie, told reporters here yesterday.

He said last month's measures, for example, are "too
selective," meaning that they cover only a limited scope of
business activities.

"The government should explain why import duties on certain
products are lowered while those on other goods are maintained,"
he said.

The Nov. 27 deregulatory measures, among other things, lower
import tariffs on 739 kinds of goods and reduce non-tariff
barriers on certain products.

"The government is apparently less transparent in its policy
of trying to lower tariffs and eliminating non-tariff barriers,"
Aburizal said.

However, he acknowledged that the measures will be useful to
lower costs for production.

"The government's intention to lower production costs will be
more effective if the measures are combined with simplification
of licensing procedures," he added.

Aburizal said businessmen should also respond the government's
measures by reviewing their business strategies.

The executive said Kadin has also welcomed the government's
policy of easing restrictions on foreign investment in Indonesia.

He suggested that the government announce the schedule and the
scope of the coming deregulatory measures to encourage
businessmen to prepare themselves for the adjustment.

"By announcing the schedule, businessmen will have more time
to prepare themselves," Aburizal said. (yns)