Committee to supervise regional autonomy established
Tuesday, June 19 2001 - 02:39 AM WIB
The founders include the Indonesian Chamber of Commerce and Industry, the Economic and Society Research Institute at the School of Economy, the University of Indonesia (LPEM-FEUI), the National Economic Recovery Committee (KPEN), and the Center for Strategic and International Studies (CSIS).
The committee is chaired by Bambang Sujagad.
Businessman Sofyan Wanandi, also KPEN chairman, said that KPPOD would closely monitor if the implementation of the regional autonomy would improve efficiency of governance or on the contrary create more levies and eventually high cost economy.
KPPOD, Sofyan said, would make an annual rating for provinces, ranking them based on their supports for investment through various facilities and also their hindrances for investment.
"This way, we will be able to see which areas really open themselves for investment and try to improve the welfare of their people," he said.
The chairperson of the LPEM-FEUI, Sri Mulyani Indrawati, said there was growing concerns among businessmen and also experts that there were efforts by some local people to control assets belonging to the central government or state owned enterprises.
The decentralization of power has also drawn concerns from the international community, especially the International Monetary Fund, Sri said. The Fund has openly expressed its concerns over the negative excess of regional autonomy, especially its impacts on macroeconomic stability.
Meanwhile, the executive director of CSIS, Hadi Soesastro, said the government, with supports from all related parties including KPPOD, need to scrutinize all regulations produced by regional administrations so that they would not burden the economy. (*)