Modern Markets Policy Discussion Not Transparent
Monday, 12 November, 2007 | 16:18 WIB

Tempo Interactive, Jakarta: Several circles have urged the government be open in discussing the Draft of President Regulation on Modern Markets.

So far the parties with interests in the policy (stakeholders) have acknowledged that they have not been involved yet as regards formulating the policy.

“We haven’t been asked for a dialog by the government for a long time,” Susanto, General Chairman of the Indonesian Modern Market Suppliers Association, told Tempo last weekend.

Earlier, the Presidential Regulation on Modern Markets and Store Management and Planning was later than the government’s target.

The regulation draft was discussed two years ago and was planned to be issued in late November 2007.

However, so far the regulation has not been issued.

Susanto said his side has never questioned the entry of foreign investors into the retail sector.

“But a clear regulation must be there first,” he said.

According to him, foreign investors must obey the provisions, such as regarding trading terms.

“At the very least, accommodating case examples from abroad.”

Retail suppliers, according to him, hope that trading terms can be firmly stated in the Presidential Regulation.

Susanto explained that the government is actually aided by the Supreme Court’s ruling that found for suppliers against Carrefour.

The dispute was because the giant foreign retailer had applied minus margins on suppliers.

Hasan Basri, Jakarta Region Head of All-Indonesian Market Traders Association, made a similar complaint.

“We were only asked to negotiate at the beginning of the discussion last year, but recently we don’t know the progress,” he said.

Traders in traditional markets, said Hasan, asked that the regulation clearly regulate the zoning or minimum distances between modern and traditional markets.

Hasan acknowledged that conditions at traditional markets were more oppressed because modern markets were built too close.

“Our turnover decreases 30 percent every year,” he said.

Muhammad Iqbal, Head of Business Competition Supervisor Commission, said he believed that the government’s sluggishness in issuing the policy placed traditional markets in a weaker position.

“How can healthy competition exist if there are no good rules?” he said.

Ardiansyah Parman, Director General of Domestic Trade, said that the policy would be issued at the same time as the Presidential Regulation on the Investment Black List (DNI).

“It shouldn’t long,” he said.

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