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The Government Not to Give Compensation to Industry

25 August 2003 13:34 WIB

TEMPO Interactive, Jakarta:The government will not provide compensation to industry due to the increase fuel prices and electricity tariffs confirmed Minister of Trade and Industry Rini Soewandi in Jakarta on Monday (6/1). According to Rini, the government had already provided subsidies for industry and facilities. These included the imposition of import duty on certain products, which was intended to protect local products in competing with foreign products. If [local industries] want to compete with foreign products, they have to face real prices, not subsidized prices, she said. Rini said the government has no choice but increasing prices. She pointed out that it is stated in the 2000-2004 national development program that the government has to reduce subsidies by 2004. However, she promised that the government will support entrepreneurs in handling this. According to Rini, she already met with some members of the Indonesian Employers Association (Apindo). During the meeting, employers conveyed their problems, such as tax restitution, informal taxes, local government regulations and the black market. Regarding this, Rini called on the employers to explain each problem in detail so that they can talk and seek a solution. She even promised to present these cases at a cabinet meeting. The government, Rini said, would handle the problems by involving related ministries. For instance, it will involve Ministry of Finance to handle the problem of taxes. (Retno Sulistyowati --- Tempo News Room)


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