Listing of decrees to detect levies

Listing of decrees to detect levies

JAKARTA (JP): The city administration is listing all
provincial decrees in an effort to detect levies which are
hampering economic growth.

"Hopefully, there are no decrees which are not in line with
policies. So, we won't have to eliminate any," Governor Surjadi
Soedirdja said, adding that his office is cooperating with the
Ministry of Home Affairs over the issue.

The action was taken by the city administration in response to
President Soeharto's appeal that provincial levies, which could
hamper the economy must be abolished.

Meanwhile, the deputy governor for economic and development
affairs, TB. M. Rais, said that the listing does not mean
practically elimination of some decrees.

"We cannot promise you that the municipality will eliminate
any decrees. Everything will be done very carefully because most
of the provincial decrees were issued to raise city revenues,"
Rais said.

He added eliminating some decrees may have a negative impact
on the city budget, which depends largely on city revenues.

The city council yesterday approved the 1996/1997 budget
proposed by the city administration at Rp 2.84 trillion; Rp 1.8
trillion of which is expected from city revenues.

Rais suggested that what really hampers investment growth is
red tape and illegal levies, not the decrees.

"Red tape and the imposition of illegal levies is the main
factor slowing down economic development," he said.

President Soeharto has called on local administrations to
revoke all rulings on levies which hamper economic growth.
Soeharto warned that he would issue a presidential decree to
enforce the reductions if moves were too slow. (yns)