Provinces need more autonomy: Consultant
JAKARTA (JP): It is important for Indonesia to give greater economic autonomy to its provinces to enable them to catch up with Jakarta's prosperity, Kenichi Ohmae, a well-known Japanese management consultant, said yesterday.
"It would be very good to grow the prosperity and then share it with the other regions in the context of the Republic of Indonesia," Ohmae said after addressing an international finance executives congress.
He also stressed the importance for the Indonesian government to decentralize its policy decision-making.
The four-day congress, held by the International Association of Financial Executives Institutes (IAFEI), was officially opened by Coordinating Minister for Production and Distribution Hartarto yesterday.
Ohmae said it is crucial to establish the right vision for each of Indonesia's 27 provinces and different sectors of industry to face the fast changing world economy.
He said he had not seen any vision in Indonesia as the one designed by Singapore for its Information Technology 2000 vision and Malaysia with its Multi Media 2020 vision.
"Of most importance is to develop the kind of government who develops a shared vision for the1country and to make sure that everyone signs in," Ohmae noted.
Touching upon deregulation, he said the financial, telecommunications and transportation sectors are the three most important industries needing deregulation.
Indonesia also needs to build more infrastructure and give more attention to the public through education rather than just boosting physical development by building lots of skyscrapers, he said.
He said excessive political exercises should be avoided, and private enterprises should instead be given more leeway to boost economic growth.
Business networking is also important, he said, particularly in anticipation of the vast changes in financial markets as well as the shift from regional customers to universal customers.
According to IAFEI's acting chairman Romano Guelmani of Italy, the organization groups 30,000 financial executives from 23 countries.
The congress is focusing on key issues such as mutual development, the impact of global finance and trade in the region, and the changes of customers and market in global competition, said Irwan Habsjah, the president of Indonesia Financial Executive Association.
Ohmae, known as "Mr. Strategy" worldwide, briefed the congress participants on some management strategies applicable for countries and organizations to face the global market competition.
The congress is scheduled to move this afternoon to Bali where all the delegates will continue the discussion until November 1. (06)