"We expect the local government to become more aware of the importance of business-friendly policies and practices," Kadin deputy chairman for banking and financial affairs Rosan P. Roeslani said here on Wednesday, adding that such policies would help various provinces across the country maximize the development of tourism, mining, agriculture, and small and medium enterprises (SMEs).
He pointed out most SMEs were unable to improve productivity and competitiveness due to lack of support from the government.
Besides, Rosan continued, a majority of SMEs could not get sufficient financial support because of their limited access to banking institutions.
"Most SMEs are not considered bankable, so they have limited access to finance, which in turn hampers their business development," he explained.
Previously, Indonesian Coordinating Minister for Economic Affairs Hatta Rajasa had urged central government and local officials to take steps to simplify the licensing process in order to attract more investments that could contribute to economic growth.
Hatta pointed out that the investment growth was crucial to maintain Indonesia`s economic growth rate at above 6 per cent amid the current global economic slowdown that resulted from financial crises in the developed world.
Meanwhile, Central Java Deputy Governor Heru Sudjatmoko called on the local government to identify and report about central government policies that could harm the local communities.
"In determining the range of policies that might be beneficial for the community, local governments should also be involved," he had said in Semarang on August 28.
Heru stated that the governor, as the representative of central government in the region, should act as mediator between the central and local authorities.(*)
Editor: Heru Purwanto
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