Susilo tells investors his govt will deal with instability
Susilo tells investors his govt will deal with instability
Zakki P. Hakim, The Jakarta Post, Jakarta
President Susilo Bambang Yudhoyono ensured some 700 foreign
investors here that the government would overcome the economic
instability of the past five weeks.
"I have every confidence that we will overcome this present
quagmire," he said on Tuesday at the Foreign Investors' Forum,
held by the International Business Chamber (IBC) with the
international investor community and the Indonesian Chamber of
Commerce and Industry (Kadin).
Susilo said that due to the weight of the oil price, which
severely impacted the government's fuel subsidy expenditures, the
government was working closely with Bank Indonesia to ensure
coordination in all economic and monetary policies.
He added that the government would soon announce its
"fundamental energy policy", which would be interconnected with
monetary policies.
The energy policy would include measures for price adjustments
as a result of subsidy reductions, but would maintain protection
for the poor; energy conservation and diversification, increased
production and refinery construction, as well as a better law
enforcement component to fight the smuggling of gasoline and
diesel out of the country.
In his keynote speech, Susilo reiterated his commitment in
dealing with the red tape, conflicting regulations, taxation
issues, the relatively high cost of doing business here, rampant
corruption, legal certainty, transparency and contract sanctity;
as well as commitments on intellectual property rights, rigid
labor regulations, the ailing infrastructure and inefficient
customs and ports.
"Did I miss anything? If I did, please SMS me at 9949," he
said to the amusement of the audience.
He went on to promise that the government would soon submit to
the House of Representatives, a new draft of the investment law,
which he said, if enacted, would make the country's economy much
more "business friendly".
The government is also trying to review the severance payment
regulations, improve regulations for contract workers and
undertake more flexible outsourcing regulations, he said.
Moreover, he promised to reactivate the National Team for the
Development of Exports, which he would personally lead.
Through the team, he would also hold a round table "Informal
President's Investors Forum" every four months with business
leaders.
Susilo expects to have the initial forum in October after his
visits to New York and the Middle East.
IBC chairman Peter Fanning said the event was for foreign
investors in the country "to show their presence physically to
the President and for the President to directly say to them
whatever he wanted to say."
"Foreign investors already active in the country are the best
ambassadors for the government. The President's speech will be of
great assistance to us in promoting Indonesia in our home
countries," said Fanning, also the chairman of the event.
The event involved business associations from the United
States, Australia, Great Britain, Canada, France, Germany, Italy,
South Korea, Malaysia, the Netherlands, the Philippines,
Singapore, Switzerland, Taiwan, Thailand, Japan, China and the
European Union.