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)