RI to open up service sector earlier than planned: Bambang
RI to open up service sector earlier than planned: Bambang
JAKARTA (JP): Minister of Finance Bambang Subianto said on
Thursday the economic crisis necessitated that the country
expedite the opening of its service sector, including for
accounting firms.
He said full adoption of the World Trade Organization
agreement on free trade and service was a crucial part in fixing
the shattered economy.
"The earlier plan was to gradually open the service sector
until 2020, but unfortunately we have to face quite a heavy
crisis in which we have to make restoration efforts," he told a
seminar on accounting.
He did not provide the new timetable for the liberalization of
the accounting sector.
Foreign accounting and other consulting companies are allowed
to operate in Indonesia in cooperation with local partners. The
government has yet to forge a commitment with the WTO to open up
the service sector.
Bambang said the government hired several foreign accounting
companies through their local partners to review the financial
condition of commercial banks to gain international trust in the
auditing results.
The decision was fiercely criticized by local accounting firms
and bankers.
The government had no choice but to turn to foreign
accountants because overseas investors were the most likely
candidates to buy into the cash-strapped banks, Bambang argued.
"If we used local accountants, will the results be credible in
the international financial market? If not, we'll lose one
year."
Restructuring the banking sector is an essential key to the
country's economic recovery. The foreign accountants are
expected to complete the financial due diligence audit on local
banks by the end of October.
By the end of this year, all banks are expected to have a
capital adequacy ratio of a minimum 4 percent.
Bambang called on the country's service industry including the
local accounting firms to improve its professional quality and
discipline to compete foreign service providers as the government
may no longer adopt past protectionist policy.
"From now on we'll take a market demand policy," he said.
(rei)