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The government finally unveiled Tuesday its long-awaited
package of new economic policy reforms that will, among other things,
provide tax incentives for publicly listed companies and facilitate
easier access to bank loans for small and medium enterprises (SMEs).
Coordinating Minister for the Economy Boediono said that the new
reforms would significantly boost the government's efforts to
accelerate economic growth so as to reduce unemployment and poverty.
"Hence, each of the policies contained in the new package set out the
program, action and output with clearly measurable targets," he said
during the announcement of the new policies.
The 60-page policy package covers programs and measures in four main
economic fields -- the financial, investment, infrastructure
development and SME sectors.
In the investment sector, the government will reduce the time required
for obtaining business licenses to 25 days from the current 97 days. It
will also simplify customs clearance procedures so that goods can be
released through the green channel within 30 minutes and through the
red channel in three days.
Speaking during the announcement of the economic package, Finance
Minister Sri Mulyani Indrawati said that it would also provide tax
incentives for publicly listed companies as part of the government's
efforts to turn the country's capital market into an important
alternative to the banking sector for businesses in raising funds.
She said that the regulation detailing the tax incentives would be
issued in August.
The government will also push for the merger of the Jakarta Stock
Exchange (JSX) and the Surabaya Stock Exchange (SSX) to make them more
competitive and efficient, she added. According to the document, the
merger process is expected to be completed in October.
In addition to providing tax breaks for publicly listed companies, the
new economic policy package also stresses the need to provide SMEs with
easier access to bank loans.
For this, the government will strengthen the financing capacity of
state credit insurance firm PT Asuransi Kredit Indonesia (Askrindo) and
state financing firm Perum Sarana Pengembangan Usaha so that they can
extend the scope of their services to SMEs.
Also in the SME sector, Bank Indonesia will revitalize the role of
local financial consultants so as to increase the bankability of SMEs.
Boediono said the government would also speed up land certification
services for small businesses by revising the existing regulations
issued by the National Land Agency, the Ministry of Home Affairs and
the Ministry of Cooperatives and SMEs. "This is important so that small
firms can use their land titles to secure loans," he said.
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