Tunky vows deregulation will spur economy

JAKARTA (JP): Minister of Industry Tunky Ariwibowo promised yesterday that government deregulation will slash production costs and strengthen industry.

"The planned deregulatory measures will increase the competitiveness of Indonesia's products both on the world and domestic markets and eventually boost the country's economy and raise the government's revenues from taxes," he said at a ceremony yesterday for the certification of industrial production by three companies.

PT PAL, a state-owned shipbuilder, PT Boma Bisma Indra, a state-owned engineering company, and PT Puspetindo, an engineering firm, were allowed to use the SNI.19-9001 quality standard certificates for their products. SNI.19-9001 is a code for the ISO-9000 quality standardization system adopted in Indonesia.

Tunky explained that the planned deregulation, not yet decided on, will cover all aspects of business.

He said the measures will include the reduction of import barriers and the streamlining of investment procedures to cut expenditures of time and money.

He refused to specify when the measures will be issued.

A senior official of the Investment Coordinating Board said earlier this week that the government will likely announce the measures in June.

Tariffs

Tunky said yesterday that tariffs will be lowered and restrictions on imports of raw and other basic materials will be eased to make domestic production of component parts cheaper.

"Lower costs for the production of components will hopefully encourage companies in industrial countries to relocate to Indonesia," he said.

He said the streamlining of investment procedures and reduction of restrictions on imports of raw materials are also expected to encourage investors to establish up-stream industrial plants, strengthening the country's industrial structures.

Indonesia's large population and speedy economic growth have encouraged investors to set up industrial plants to manufacture consumer goods in the last two decades and large investors have established plants for the production of basic materials over the last few years. However, many industrial sectors still rely on imports of raw materials which are not produced here.

State Minister for Development Planning Ginandjar Kartasasmita said this week that the planned deregulatory measures will also include the decentralizing of the decision making process to reduce costs, minimize red tape and end delays. (10)