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)