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)