Tunky vows deregulation will spur economy
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)