Economic Policy Package Considered to Have Missed Target
Wednesday, 13 June, 2007 | 16:00 WIB

Tempo Interactive, Jakarta: The economic policy package launched by the government yesterday (12/6) is considered not to have touched the real sector.

According to an economist who is a member of Indonesia's Awakening Team, it is not a policy package but rather bureaucracy routineness.

“If the policy is aimed at developing the real sector, the related small- and medium-scale enterprises (SMEs) should be the majority,” said Revrisond Baswir, the Gadjah Mada University economist.

The fact is that almost 60 percent of the policy package involves finance sector that relates to insurance and banking, not the real sector.

He is of the opinion that there being no policies issued related to the agriculture sector is proof that the package does not touch the real sector.

“In spite of the fact that most of the SMEs are in the agriculture sector, improvement of investment climate in agriculture is not mentioned at all,” explained Revrisond.

A similar opinion was conveyed by Fadhil Hasan, the Institute for Development of Economics and Finance (INDEF) economist.

He pointed out that the policy package had missed its target.

The difficulty of the real sector and SMEs is in obtaining loans from banks and this is not answered in the policy package.

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