Government To Issue Another Economic Policy Package

Jakarta (Antara Bali) - Coordinating Minister for Economy Darmin Nasution  said the government will issue a XIV economic policy package in the next two weeks.

"Perhaps in two weeks. It is still being discussed," Darmin said here on Wednesday without giving details of the new economic policy package.

The government  as from September last year already issued 13 economic policy packages marked with massive deregulation measures aimed mainly at attracting foreign investment  and strengthening the competitiveness of the country's economy.

Amid weak performance in exports, the government hopes to strengthen the investment sector as an economic growth driver beside the consumption sector.

Darmin said the 13 policy packages have given a positive impact on the country's economy  notably with the establishment of Bonded Logistic Center (PLB).

"There are tens already investing there  and they are not small investors though not very big either, but enough to surprise me," he said.

Darmin  said the PLB facilitates logistics as the process of provision of imported goods would be faster  and more efficient.

A PLB constitutes multi function logistic warehouse to pile up imported or local goods with tax facility.

The facility is in the form of postponement of payment of import duty  and exemption of value added tax (VAT) and or luxury sales tax (PPnBM) , and flexibility in other operations.    
    
The establishment of PLB, which constitutes part of the implementation of the second economic policy package, is expected  to result in lower logistic costs  and improve the competitiveness of the country's economy.

Many observers said the series of economic policy packages have no significant short term impact yet on the country's limping economy.

The economy, however, has grown slightly faster 5.18 percent in the second quarter from 4.91 percent in the previous quarter  and the trend is expected to continue for the rest of the year. (WDY)