'Lack of coordination hampers growth'

The Jakarta Post, Jakarta

There is a visible lack of coordination between the central government and local administrations in the development of the real sector and micro, small and medium businesses, a minister says.

The government, through last year's policy package under Presidential Decree No. 6/2007, plans to accelerate growth in the real sector and strengthen small and medium enterprises, which is expected to boost the country's economy.

However, while most of the programs and measures in the policy package have been wrapped up according to the government's target, the implementation has not gone as planned.

"We acknowledge that there is an information gap between the national and local levels. For instance, when the central government finishes formulating a measure, local administrations still do not know the details," Coordinating Minister for the Economy Boediono said Thursday.

"We will soon address the issue. In this case, we will send a copy of each new measure to local administrations to solve the problem," he said.

Of the 159 measures in the policy package, the government had finished 109 of them as of December last year. It has wrapped up 40 out of 49 measures on investment, 28 out of 36 on the financial sector, 28 out of 34 on SMEs and 13 out of 40 on infrastructure development.

According to Jannes Hutagalung, an expert adviser to the coordinating minister, the government has not been able to finish formulating more measures on infrastructure development because it is waiting for several draft laws to be endorsed by the House of Representatives.

Some bills related to infrastructure, including those on income tax, shipping, public transportation, aviation, electricity and energy, are still being deliberated at the House.

Infrastructure development is seen as a key component of the country's economic growth, as infrastructure projects will create jobs and reduce transportation costs, which will lower the prices of goods.

This year, Jannes said, the government would discuss a new policy to further support the development of infrastructure and the growth of SMEs.

He also said the Finance Ministry hoped by the end of 2008 to roll out nationally the "national single window system" currently in use at Tanjung Priok Port in Jakarta.

Under this system, which was introduced in December, port officials can provide quicker customs service and cargo clearance because all documents are processes electronically.

The government expects the national single window system to be integrated in 2009 with the ASEAN single window system to facilitate trade between ASEAN countries. (adt)