Indonesian Govt Calls on Business Leaders’ ‘Sense of Patriotism’ to Save the Economy

Govt Calls on Business Leaders’ ‘Sense of Patriotism’ to Save the Economy

By Tito Summa Siahaan on 9:22 pm September 11, 2013.
The government is showing signs of desperation in its attempt to improve the country’s worsening economic situation, calling for business “patriotism” in dealing with the country’s weakening currency and persistent current account deficit. Finance Minister Chatib Basri, Trade Minister Gita Wirjawan, and Industry Minister MS Hidayat, met with more than 140 business leaders including Franky Widjaja, chairman of Sinar Mas Group, Sofjan Wanandi, chairman of the Indonesian Employers Association (Apindo), and Suryo Bambang Sulisto, chairman of the Indonesian Chamber of Commerce and Industry (Kadin), in Jakarta on Wednesday.Industry Minister MS Hidayat, said that during the closed-door meeting he delivered a message for business leaders to cultivate “a sense of patriotism.”

“I asked them to increase exports, improve performance and to keep workers productive. If, in this attempt to show patriotism, they need back-up from the government, we will supply it,” he said.

The three ministers have conveyed their willingness to revise or alter regulations in favor of more exports, according to Hidayat. “As long as it is not in the form of revising a law, which would take a long time to be done,” he added.

The priority is on labor-intensive industries such as footwear and textiles, and flagship industries like palm oil.

Hidayat vowed that the outcomes from the meeting will be implemented in the next three to six months.

Trade Minister Gita Wirjawan said the government has also requested businesses to hit the brakes on imports.

“They realize that they have imported a lot of goods, and they agree with the need to reduce imports,” Gita said.

He said the government will also increase its efforts to boost exports by expanding the market for Indonesian products, with Southeast Asian countries and the United States emerging as priorities.

Gita claimed the outcome from the meeting would be included in the government’s negotiations on bilateral trade agreements. “We will act as long as it is within the ambit of World Trade Organization rules,” the minister said.

For their part, businesses complained about competition from illegally imported goods. This concern would be addressed by strengthening supervision at ports across the country, according to Gita.

Finance Minister Chatib Basri shared only a few words on the meeting outcomes, saying businesses must be realistic in their demands.

“I have listened to what they want, I’ll see what we can do,” he said.

Weak exports coupled with massive imports of fuel and capital goods has put Indonesia’s current account into deficit over seven consecutive quarters, reaching a record high $9.8 billion deficit for the April to June period this year, the equivalent of 4.4 percent of the country’s gross domestic product.