Kadin tells govt, private sector to better efficiency

Kadin tells govt, private sector to better efficiency

JAKARTA (JP): The Indonesian Chamber of Commerce and Industry
(Kadin) yesterday called on the government and private sector to
improve efficiency to face the liberalization of trade and
investment set by the Asia Pacific Economic Cooperation (APEC)
forum.

"We have to adopt the motto `be efficient or die' for our
businesses," said Kadin Chairman Aburizal Bakrie, referring to
Indonesia's heroic motto of the 1940s, "get free or die."

APEC leaders issued the Bogor Declaration after their second
informal forum in Bogor, south of here, earlier this month,
stipulating that the forum's developed members should liberalize
themselves by 2010 and developing members by 2020.

Kadin also called on the government to create a more conducive
business climate through deregulatory measures, such as tripping
the remaining high import tariffs, reducing non-tariff barriers,
eliminating complicated trade regulations and removing price
controls.

Kadin also made an appeal to the government to foster the
capability of local service companies to compete on the world
market.

Viewing infrastructure as a vital requirement for economic
growth, Kadin asked the government to quicken the pace of
investment in infrastructure, especially in electricity,
telecommunications, clean water and transportation facilities.

Timetable

To well anticipate the trade and investment liberalization in
2020, the government is also asked to prepare a "baseline"
program, by making a clear timetable in reducing protection for
the local manufacturing industry.

"The government should invite domestic industrial companies to
discuss the baseline program," he said. "I think it will be
better if they can form a committee for such a program."

Kadin also suggested that the local stock markets be more
efficient, liquid, transparent and competitive so that they would
be able to catch a portion of the international capital which
moves freely among the world capital markets.

"I hope local companies will utilize stock market instruments
by listing themselves on the Jakarta and/or Surabaya stock
exchanges, the parallel market or even in foreign stock markets,"
Aburizal said.

In addition to its appeals, Kadin yesterday also announced
that coinciding with the APEC's second forum, business agreements
worth some US$49 billion were signed.

The agreements include the Natuna gas project worth $35
billion, which will be operated by the American oil company Exxon
and the state-run Pertamina.

The second largest is a port construction project, worth $5
billion, which will be accomplished by PT Adora Indonesia, an
Australian-Indonesian joint venture company, PT Batu Hitam
Perkasa and PT Indonesia Bulk Terminal.

"Look, if just 30 percent of the US$49 billion materializes,
I'd say it's a great achievement," Aburizal said, adding that
Kadin itself also forged cooperation with its counterpart from
Chile, the Philippines and the United States. (rid)