Kadin warned against colluding with state officials
Kadin warned against colluding with state officials
Rendi A. Witular and Zakki P. Hakim, The Jakarta Post, Jakarta
While the business community is still facing chronic government
red tape in running their businesses here, Vice President Jusuf
Kalla is urging them not to use is as an excuse to collude with
government officials.
Speaking during a leaders meeting of the country's powerful
business lobby -- the Indonesian Chamber of Commerce and Industry
(Kadin) -- last week, Kalla repeated earlier calls by President
Susilo Bambang Yudhoyono to drop corrupt practices in doing
businesses.
"It is time for businessmen to detach themselves from
collusion practices. It is time for us to run our businesses
fairly," said Kalla, who is the former chairman of family-run
Hadji Kalla business group.
Kalla's remark was made at a time when the government is in
the process of tendering a number of massive infrastructure
projects. The first batch offers 91 projects valued at US$22.5
billion, to be followed later in November by a second offering of
projects worth about $57.5 billion.
There are concerns that the projects would only be granted to
those who have strong political ties.
Meanwhile, Kadin chairman Mohamad S. Hidayat said the calls
for "clean" businesses could only take place if corruption within
the civil service is reduced and the bureaucratic chains are
cutback.
"It is good advice. But the government has to show that it has
managed to clean up corruption on the part of state officials and
has reformed the bureaucracy. This is the only way to prevent
corrupt business practices," said Hidayat.
Critics have said that the Susilo-Kalla administration has
failed to produce improvement in the country's investment and
business climate during its first three months.
Questions also linger over the seriousness of the government
in trying to cut the corruption and collusion chain between the
business community and state officials, given the questionable
track record of some high-ranking state officials, including
Kalla himself.
When Kalla was the coordinating minister for people's welfare
under president Megawati Soekarnoputri in 2002, his company PT
Hadji Kalla managed to convince state social security firm PT
Jamsostek to invest in the company's medium-term notes (MTNs)
worth Rp 200 billion (US$22.2 million).
The Supreme Audit Agency (BPK), that audited Jamsostek,
declared later that the MTNs issued by Hadji Kalla had a high
risk of default due to some irregularities during the issuing
process.
Kalla has denied the accusation, saying that his company had
followed all necessary regulations in issuing the MTNs.
"We have to ensure that Susilo and Kalla are not abusing their
authority to allow their family members and friends to receive
state facilities. We need that assurance before we can believe in
them," said a noted businessman who asked for anonymity.
Recommendations made during Kadin meeting
* Improve coordination between the private sector and the
government.
* Provide a minimum rate for air transportation.
* Improve the role and performance of the Supervision Agency
for Air Carrier Safety.
* Support the formation of a national profession certification
agency (BNSP).
* Set up a national productivity council in a bid to help
increase the country's industrial output.
* Enhance the country's product standards.
* Promote the use of local products.
* Reduce rates for value-added tax and income tax.
* Waive taxes for equipment used in research and
development activities.
* Revoke departure tax.
Source: Kadin