New deregulatory measures planned

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)