President Joko Widodo, Kadin Discuss Bekasi-Purwakarta Special Economic Zone

President Joko 'Jokowi' Widodo discussed various issues to boost economic growth and Indonesia's international competitiveness during a dialogue with representatives of the Indonesian Chambers of Commerce and Industry, or Kadin, led by its chairman Rosan Roslani on Thursday (26/10). (Photo courtesy of Kadin)

By : Jakarta Globe | on 11:45 PM October 26, 2017
Category : Business, Economy

Jakarta. President Joko"Jokowi" Widodo, together with two senior coordinating ministers and seven other ministers hosted on Thursday (26/10) a dialog with the leaders of the Indonesian Chamber of Commerce and Industry (Kadin) led by Chairman Rosan Roeslani at the Presidential Palace to discuss breakthrough initiatives in expediting Indonesia's national economic growth to raise Indonesia’s global competitiveness.

For more than three hours, the discussion covered various issues, including the continuity of fiscal reformation, empowerment of agro-industry, strengthening the synergy between state owned enterprises, or SOE, and the private sectors, and also synchronization and harmonization of various regulations.

The meeting also discussed the imminent need to increase efficiency and decrease domestic production costs by way of the establishment of a Bekasi-Purwakarta Special Economic Zone (SEZ) as Indonesia's and South East Asia's economic center.

“The SEZ in the Cikampek corridor, along with the clear concept of one-roof economic coordination and the easier and simplified regulations will give a major impact to expedite the growth of the industrial sector and the national economy with a lower production cost. This will enable us to compete with China,” Rosan said.

The discussion on continued fiscal reformation focused on the harmonization of Indonesia's income tax rates to be fully competitive with Indonesia’s neighboring countries. Further, the discussion talked about simplification of the tax system that will result in more investment and job creation.

The dialog also agreed on a closer cooperation between SOE and the private sector. SOE will now pass on contracts up to Rp 100 billion ($7.4 million) to local or regional private enterprises.

“Kadin suggested a Rp 50 billion ceiling. However, the President and the Minister of State Owned Enterprise Rini Soemarno, were more eager and determined a Rp 100 billion ceiling for local private sectors cooperation with SOE,” Rosan said.

The Government also explained the restructuring plan to reduce the number of SOE's from 800 to 200 companies through various initiatives.

This intensive meeting was attended by the Coordinating Minister for the Economy Darmin Nasution, the Coordinating Minister of Maritime Affairs, Luhut Binsar Panjaitan, the Minister of State Secretariat Pratikno, the Minister of Finance Sri Mulyani, the Minister of SOE Rini Sumarno, the Minister of Public Works and Public Housing Basuki Hadimoeljono, the Minister of Energy and Mineral Resources Ignatius Jonan, the Minister of Transportation Budi Karya, the Minister of Employment Hanif Dhakiri, and the Minister of Industry Erlangga Hartanto.

In addition, the Director General of Taxation, Ken Dwijugiasteadi were also asked to attend this meeting.

Rosan said that President Jokowi had agreed to continue this meeting once every three months.

Chairman Roslan was accompanied by key Kadin leaders including James Riady, Anin Bakrie, Meme Carmelita, Suryani Motik, Franky Wijaya, Raden Pardede, and Anton Supit. Also present are North Sumatera Kadin Chairman Ivan Iskandar Batubara, Central Kalimantan Kadin Chairman Tugiyo Wiratmodjo, and Central Java Kadin Chairman Kukrit Suryo Wicaksono.

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