Major reshuffle at industry ministry

Major reshuffle at industry ministry

JAKARTA (JP): The government replaced four senior officials at
the Ministry of Industry and Trade on Wednesday in an effort to
revitalize the ministry to adapt better to new challenges.

Under presidential decree No. 12/2001 issued on Jan. 9, the
government replaced Djoko Moeljono, director general for foreign
trade affairs; Hamid Machrus, director general for small and
midsize industries; Rosediana Suharto, head of the ministry's
research and development board; Arifin Lumban Gaol, head of the
Commodities Exchange Supervisory Board (Bapebti); and Riyanto B.
Yosokumoro, expert staff for marketing.

Riyanto was promoted from marketing to head the director
general for foreign trade affairs. Marwoto, formerly director for
engineering and machinery, was promoted as the new director
general for small and midsize industries.

Manahan Laut Simbolon, formerly secretary of the ministry's
research and development board, was promoted as head of the board
while Ridwan Kurnaen, previously secretary of Bapebti was
appointed as the board's chairman.

Minister for Industry and Trade Luhut Pandjaitan called the
reorganization a routine course to adapt to global changes.

"New people come, old people go," Luhut told reporters after
the inauguration ceremony.

Djoko has headed the directorate of foreign trade affairs for
about 15 years before Riyanto, a senior staff member at the
ministry, took over.

According to sources, the government has offered Djoko an
ambassadorship. Luhut, however, only confirmed that Djoko did not
retire and would have a new post soon.

Ridwan will be in charge of supervising the country's first
commodity futures exchange market, the Jakarta Futures Exchange
(JFX), which his predecessor, Arifin Lumban Gaol, helped
establish in December last year.

Tax review

Meanwhile, Luhut said the government planned to scrap export
taxes on crude palm oil (CPO) to boost its competitiveness.

He said it had been agreed by senior officials from the
Finance Ministry to abolish the five percent export tax on crude
palm oil and its derivatives.

"We hope the change can be put into effect by February first,"
Luhut said, but added that the plan required the Finance
Minister's final approval.

The government has long considered scrapping CPO export taxes
to counter declining exports of the commodity.

Indonesia's CPO exports have suffered due to sharp competition
from Malaysia, the largest CPO producer in the world.

Luhut expressed confidence that Finance Minister Prijadi
Praptosuhardjo would approve the plan, as it related to the
country's overall export targets.

"We have to look at the multiplier effects of such a
decision," he said, adding that he would call Prijadi to present
his proposal.

Prijadi has opposed the idea of abolishing CPO export taxes
because of the government's tight budget, and worry that it might
drive up local CPO prices.

The government originally imposed the export taxes to prevent
a shortage of CPO in local markets. The policy was taken during
the sharp depreciation of the rupiah against the U.S dollar.

But Luhut assured that if domestic demands for CPO and its
derivatives soared, the government would reinstate the export
tax.

The government will also review a recently issued regulation
on value added taxes on the sales of luxury goods, according to
Rosediana, the former head of the ministry's research and
development board.

Rosediana, who according to Luhut will become his expert on
taxation and tariffs affairs, said the Finance Ministry issued
the new tax regulations without consulting her office.

She said that meetings would be held between the two
ministries to review the new tax policy.

It was agreed in earlier meetings between the two ministries
to downgrade several products that had been classified as luxury
goods, she said.

These products, she added, include, among others, electronic
products such as televisions and radios and busses used for
public transportation.

Rosediana estimated the government would have completed its
review within three months, after which it would consult with the
House of Representatives. (bkm)