The Indonesian Chamber of Commerce and Industry (Kadin) believes 75 percent of its freshly drawn-up business road map will be adopted by President Susilo Bambang Yudhoyono's new administration.
Kadin chairman Mohamad Suleman Hidayat, himself a candidate for either trade minister or industry minister, told The Jakarta Post on Wednesday that Yudhoyono had agreed with business stakeholders to ink a successful legacy in the business and economic sector during his last term in office.
"Because of this, there is a greater possibility the upcoming administration will apply more of Kadin's recommendations," Hidayat said.
"During his previous five-year term, Yudhoyono only adopted about a third of Kadin's recommendations, of which only 30 percent was realized."
Among the realized recommendations is the reform of the tax system and good governance in tax management by the Finance Ministry's once highly corrupt Directorate General of Taxation.
The lower take-up of Kadin recommendations is mostly due to resistance in parliament and a string of disagreements among economic ministers.
Kadin is slated today to launch its road map of business and economic recommendations for Yudhoyono's upcoming administration.
Most of the recommendations have been absorbed in the administration's first 100-day and five-year programs currently designed by a team headed by the former chairman of the Aceh Reconstruction Agency, Kuntoro Mangkusubroto.
Kadin, the nation's most powerful lobby group, has highlighted five programs under the road map that it expects to be fully realized by 2010.
The programs include acceleration of land clearance for business infrastructure, revision of the highly uncompetitive labor law, guaranteeing legal certainty for spatial allocation, food and energy security, and bureaucratic reform.
"I've suggested to the President that these programs be made concrete within his first year, otherwise the business community will lose confidence in the administration," Hidayat said.
Kadin's road map has been drawn up by local and overseas businessmen.
Unlike in his previous term, Yu-dhoyono's administration is now fully supported by parliament through a coalition of parties that controls a significant majority of seats.
The President is also set to see less contention within his Cabinet, with vice president-elect Boediono considered more pliable than current Vice President Jusuf Kalla.
Yudhoyono will be sworn in for his second term on Oct. 20, with his Cabinet lineup to be announced on Oct. 21 and his first 100-day and five-year programs unveiled on Oct. 29.
Several key points in Kadin's new road map
1. Passing law on land clearance for business infrastructure only in order to streamline logistics and delivery.
2. Revising labor laws and regulations aimed at boosting competitiveness of the labor market.
3. Settling overlapping spatial and land use problems, especially in the mining and agriculture sectors.
4. Reforming bureaucracy.
5. Strengthening energy and food security by boosting the performance of local companies.
6. Reviewing free trade agreements (FTA) already signed with other countries or those currently in the pipeline, in order to ensure national interests.
7. Resolving overlapping laws and regulations, especially those issued by local administrations.
8. Weaning local industry off raw materials exports to processed goods exports.
Source: Kadin
