Kadin wants to see collusion stop
Kadin wants to see collusion stop
JAKARTA (JP): The Indonesian Chamber of Commerce and Industry (Kadin) has urged entrepreneurs to put an end to collusion with government officials and to nurture business ethics.
"If there was, in the past, collusion and collaboration between economic and political powers, as of now this has to be discontinued," Kadin chairman Aburizal Bakrie said in his year- end statement yesterday.
He said that current business activities need fair competition, which depends on professionalism, efficiency and productivity.
Last year collusion between businessman Eddy Tansil and executives of state-owned Bank Pembangunan Indonesia (Bapindo), involving the issuance of letters of credit for goods which were never delivered, caused the bank to lose Rp 1.3 trillion (US$620 million).
Eddy was sentenced to 20 years imprisonment, while former Bapindo directors Bambang Kuncoro, Sjahrizal, Towil Heryoto and Subekti Ismaun and branch manager Maman Suparman were jailed for terms of between four and nine years.
Aburizal said yesterday that efficiency and productivity are core elements in boosting exports, the current growth rate of which is slower than that of imports.
Data compiled by the Central Bureau of Statistic shows that Indonesia's exports increased by only 13.54 percent, to $28.9 billion, in the January-August period, from $25.5 billion in the same period of last year. Imports, by contrast, rose 31.7 percent to $26.5 billion from $20.1 billion.
Aburizal said current high interest rates have caused Indonesian exports to be less competitive on world markets.
He suggested that banks lower interest rates on loans for exporters to about 14 percent per annum.
He also suggested that the government improve efficiency and productivity in providing services for the business sector in order to promote the growth of the country's exports which will, in turn, support national economic growth.
He said the government should also eliminate the monopolies and oligopolies which have hampered the growth of small businesses.
Small businesses need the intervention and protection of the government, he said.(kod)