Cabinet Secretary: Economic Policy Package X to Cut Oligarchic Chains and Cartels

Photo Caption: Cabinet Secretary delivered a press statement on Economic Policy Package X, at the Presidential Office, Jakarta, on Thursday (11/2)

Cabinet Secretary Pramono Anung said that the Economic Policy Package X launched on Thursday (11/2) is basically the revision of Negative Investment List (DNI) which is regulated in the Presidential Regulation Number 39 of 2014.

However, Pramono said that the principle of the Economic Policy Package is that the Government will provide protection to small, micro, and medium enterprises which have net worth for the amount not exceeding Rp 10 billion.

“First, the principle is once again to provide protection to small and medium enterprises in accordance with Law Number 20 of 2008 on small, micro, and medium enterprises,” Pramono said on Thursday (11/2) afternoon.

Second, Pramono added, the Policy will cut the oligarchic chains and cartels which have been only enjoyed by certain groups.

Pramono took the simplest example which is the movie theater. The number of movie theaters in Indonesia is only 1,117 which are accessible for only 13 percent of its population.

According to Pramono, Indonesian population is 250 million people and 87 percent of the movie theaters are in Java. More ironically, 35 percent of movie theaters are in Jakarta. Therefore, there are only 3-4 companies which receive easiness to dominate it.

“This condition is not good for our film industry, therefore the Government will make changes,” Pramono said.

Third, Pramono added, reducing the price of people’s basic needs. For example, until now basic material for medicine could not enter Indonesia, if only it could enter, barrier to entry will be applied and there is a limit.

“With this regulation, basic materials for medicine are expected to be cheaper and more affordable to the people,” Pramono said.

Fourth, Pramono explained that by becoming a member of the ASEAN Economic Community (MEA), there is a regulation stating that 70 percent of ASEAN countries could free to enter other countries.

Fifth, Pramono added, with the DNI, its changes, and its policy, new job opportunities are expected to be available more widely as well as strengthen the development capital.

Furthermore, the Package is expected to encourage national companies to compete and become stronger.

Pramono further said that some policies that have been made several times ago provide protection to certain groups only. With the Economic Policy Package X, those kind of things should be perished and people must compete to improve their qualities.

Cabinet Secretary asserted that the Policy is not the matter of liberalization because protection to small and medium enterprises become the main point.

“This Policy aims to boost modernization in our country. It is such an open policy which bring new business players, entrepreneurs, innovators, and technologies that will compete in the global market,” Pramono firmly said.

During the announcement of the Economic Policy Package X, Cabinet Secretary Pramono Anung was accompanied by Coordinating Minister for the Economy Darmin Nasution, the Head of Investment Coordinating Board (BKPM) Franky Sibarani, and Minister of Tourism Arief Yahya.

(FID/OJI/ES) (RAS/EP/YM/Naster)