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05 June 2007
New Economic Policy Package Being Prepared

The government will cut the time it takes to issue a business license to 30 days from the previous 197 days.

This decision is one of the policies included in a new economic package that will be launched in a few days’ time.

This package is a development of the economic package that was issued last year.

Boediono, Coordinating Minister for the Economy, explained there are four important points in the package.

These are: investment climate improvement, infrastructure development, financial sector repair and small- and medium-scale enterprise (SME) development.

“In terms of investment climate, there is a reduction in the time involved in processing business licenses,” said Boediono during the Investor Forum II in Jakarta yesterday (30/5).

The Gadjah Mada University (UGM) Economy Faculty Professor emphasized that this economic package was better compared to the previous one, especially in terms of regulations, license processing and taxes.

Financial and non-bank sectors, such as capital market and insurance, will also be improved.

Unlike the previous package, the new one will also discuss SMEs.

M. Ikhsan, a special member of staff of the Coordinating Minister for the Economy, said that previously SME development was discussed in separate package.

However, this time the government will discuss it in one package.

M. S. Hidayat, Head of the Indonesian Chamber of Trade and Industry (Kadin), said he hoped that the new economic package would be more concrete and could be realistically implemented.

“If the government has issued policies, it must be ready to realize them,” Hidayat when contacted by Tempo yesterday.

He also he hoped that the economic package was not like the previous one, which was only a concept.

On the occasion, Boediono also focused on the flow of funds in the capital market.

According to him, flow of funds in the capital market must not always be separated from the real sector.

He cited the State Debt Securities (SUN) and Bank Indonesia Certificate (SBI) trade transactions.

Funds withdrawn by the government from these bonds trades were used for infrastructure development.

Boediono also said there was no need to worry about the capital market's fund flow reversal trend.

The reason for this was because Indonesia's current economic system was already more prepared compared to the time of the economic crisis in 1997.


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