SBY’s Rousing Challenge to Private Sector

SBY PRESIDENCY

President Susilo Bambang Yudhoyono on Tuesday called on the private sector to take a key role in accelerating the development of the economy.

He said local business , wherever possible, should take preference over foreign partners. “International cooperation is important but it cannot make a country succeed,” Yudhoyono added.

“Let us, in Indonesia, with our own determination, build a high income per capita, increase investment so that even without being part of BRICS, Indonesia can become its own emerging economy,” Yudhoyono said. He was referring to the five emerging economies – Brazil, Russia, India, China and South Africa.

The president made the remarks while closing a two-day meeting between government and business representatives in Bogor. He hoped the government’s good intention in inviting the business world to become a main stakeholder would have a positive response.

“I want to invite our domestic business sector, you all, to become the main players before we take on partners from friendly countries,” Yudhoyono said, adding that Indonesian businesses had the benefit of knowing the problems that had to be addressed.

Indonesia already had many short-, medium- and long-term development plans, but needed another to guide efforts to accelerate and expand certain specific economic sectors, Yudhoyono told the gathering.

The Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development (MP3EI), was tabled for discussion at the Bogor meeting. It designated six regions as main economic corridors.

“We are coming out with the MP3EI because we want to accelerate and expand certain sectors of our economy, with clear orientation and timeline – who does what, who invests and how much and where,” Yudhoyono said.

He added that the MP3EI does not substitute other plans and policies but complements them.

The master plan, he said was a “living document,” a long-term strategic plan spanning three governments through to 2025.

“Because it is a living document, there should be a planned commitment,” he said.

He cited the economic sectors needing urgent action from both public and private companies – food, energy, infrastructure, transportation, financing and banking, and micro-, small- and medium-scale enterprises.

“Let us build up mutual trust. The government trusts the business sector, state-owned or private, but our friends in the business sector should also trust the central and regional government to improve things,” Yudhoyono said, adding that “With mutual trust, we can achieve our mutual interests.”

The government, he said, should provide good governance and a good bureaucracy. It should create a sound investment climate and come out with the appropriate policies and regulations. Speaking to the regions, he challenged them to provide the opportunities, climate and conditions conducive to investment.

The business world should implement the best practices, and achieve better tax compliance and corporate social responsibility.

“The MP3EI is not a law, but I hope that it becomes our commitment. Let us implement this even though it is not a law.

“We should make this plan binding for all, the central and regional governments and the business sector,” the president said.

Sofyan Wanandi, chairman of the Indonesian Employers Association (Apindo), agreed that the government and business sectors must join hands for the national interest. “National businessmen must be involved in the development of Indonesia’s economy, we can’t rely fully on foreign investments,” he said.

Therefore, the government must help the business sector in investing the $103 billion it has committed for the next five years, he added.


Source: http://www.thejakartaglobe.com

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