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)