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Govt Urged to Streamline Policies Ahead of AEC Implementation

The Jakarta Globe
January 19, 2015 | 2:31 pm
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From left to right: management expert Tanri Abeng, public policy expert Agus Pambagyo, Kadin chaiman Suryo Bambang Sulisto, BeritaSatu Media Holdings president director Theo L. Sambuaga, economist Didik J. Rachbini, Donna Gultom, the Trade Ministry's director for ASEAN cooperation, and Primus Dorimulu, chief editor of Suara Pembaruan, Investor Daily and BeritaSatu.com. (Beritasatu Photo/Uthan A. Rachim)
From left to right: management expert Tanri Abeng, public policy expert Agus Pambagyo, Kadin chaiman Suryo Bambang Sulisto, BeritaSatu Media Holdings president director Theo L. Sambuaga, economist Didik J. Rachbini, Donna Gultom, the Trade Ministry's director for ASEAN cooperation, and Primus Dorimulu, chief editor of Suara Pembaruan, Investor Daily and BeritaSatu.com. (Beritasatu Photo/Uthan A. Rachim)

Jakarta. Indonesia's private sector will be operating on an unlevel playing field when the ASEAN Economic Community comes into effect at the end of this year, and companies risk bankruptcy if the government doesn't quickly find a way to better streamline its policy in the fields of trade, infrastructure, energy and labor, a top representative of the nation's business community said on Monday.

Indonesian Chamber of Commerce and Industry (Kadin) chairman Suryo Bambang Sulisto said that when it comes to the challenges of a single Southeast Asian market, the question is not so much whether Indonesian companies are ready, but whether the government is willing to boost preparedness.

Speaking at a discussion at the office of BeritaSatu Media Holdings, the parent company of the Jakarta Globe, Suryo explained that a comprehensive strategy is essential to make Indonesia ready for the AEC, but that the current situation is not very promising.

"We have so many natural resources ... gas, coal etcetera, but we're still unable to meet all of our energy needs," he said, as an example of insufficient government coordination in solving the nation's structural problems, while also mentioning the capital's epic traffic woes. "So the question is: Is the government ready?"

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At the same discussion, the Trade Ministry's director for ASEAN cooperation, Donna Gultom, stressed that the government was currently working very hard to prepare for the implementation of the AEC.

Donna said the main focus was on boosting Indonesia's capacity to export value-added products. As part of this push — and to prevent that Indonesia, home to 40 percent of ASEAN's 625 million people, would become a mere market under the AEC — the government has several goals: making investment simpler and more transparent, revamping land regulations and investing in public transportation, maritime "highways" and power plants.

Management expert and former state-owned enterprises minister Tanri Abeng added that a better synergy was needed between the private sector and the government, and that current policies seemed to be more focused on "firefighting" instead of designing a comprehensive plan to coordinate economic growth.

"We can fix many things if the political will is there," Tanri said.

Agus Pambagyo, a public policy expert, told the discussion that Indonesia's infrastructure is far below par across the board, but that fixing this problem is not just about money.

"The money is there, but the permits aren't," he said, using the example of efforts to improve Sumatra's energy infrastructure being hampered by uncooperative district heads. "If we don't have a good plan in place for food, energy and especially water, there will be civil war here in 15 years' time."

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