New deregulatory measures planned

JAKARTA (JP): Minister of Industry Tunky Ariwibowo said here yesterday that the government is preparing new deregulatory measures to improve the business climate and industrial efficiency in the country.

Speaking to newsmen following his meeting with President Soeharto, Tunky said that simplification of licensing procedures remains an essential factor in attracting both foreign and local investors.

The planned deregulation measure is expected to further improve business efficiency, he said, adding that the high-cost economy remains a major obstacle in investment activities in the country.

Tunky, together with Minister of Finance Mar'ie Muhammad, reported to the President yesterday about the recent trip of the deregulation team, comprising of himself and first echelon officials of both the ministries of industries and finance, to Aceh, North Sumatra and North Sulawesi.

The minister said that the team members met provincial officials and businessmen during the visit to get inputs about investment handicaps in each province.

"The discussions with the local officials and businessmen were very constructive and frank," he said. "Most businessmen still complained about the high-cost economy."

Tunky, however, declined to elaborate what factors cause the high-cost economy.

Local and foreign investors often complained that the number of deregulatory measures issued by the government since the 1980s have not been fully implemented. Many local officials are still involved in red tape practices when providing services to investors.

According to businessmen, the red tape is the main factor that causes their business inefficiencies.

Tunky promised that the forthcoming deregulatory measures will be more affective in dealing with red tape and in further improving the country's business climate.

The minister said that during the trip, the deregulation team asked provincial administrations to set up their own economic teams to help monitor the implementation of deregulatory measures.

"Such teams could also help governors solve investment problems so that they would no longer need to consult with Jakarta in solving investment problems," he said.(hen)