Indonesia Services Dialogue Disseminates Policy Recommendation about Four Services Sectors

Jakarta, 20 October 2015

Indonesia Services Dialogue Disseminates Policy Recommendation about Four Services Sectors

Jakarta, October 20, 2015. Indonesia Services Dialogue (ISD) addresses four recommendations about services sectors to the Government. They encompass the importance for the Government to show strong political will in developing Indonesia services sectors, strengthening of coordination and acceleration of implementation, reviewing of the Negative List of Investment, and depolitization of Regional Minimum Wage.

“Services sectors are often overlooked. Meanwhile, its contribution to the economy is accounted for 51% of GDP and 43% of total employment in Indonesia. Until recently, services sectors have not been admitted into the National Medium-Term Development Plan (RPJMN),” said Mr. Chris Kanter, Chairman of ISD Board of Founders, while opening the Dissemination of ISD Policy Recommendation, An Initial Step Towards Efficiency of Services Sectors in Indonesia.

Taken place at Graha Sawala, Coordinating Ministry for Economic Affairs Republic of Indonesia, ISD conducts an official event to address its recommendations to ministries, institutions, and regulators as key parties of policy making in services sectors. This forum accomodates inputs from private sectors, both services providers and users, high-level Government official, research institution, donor, and experts in Logistics, Distribution, Energy and Information and Communications Technology (ICT) Services and e-Commerce.

Mr. Chris Kanter mentions that the essence of the establishment of ISD is collaborative dialogue in regards to accountable fact and data. ISD plays its role as think-tank for the Government for efficiency of services sectors and its development in international trade.

In the same forum, Ms. Sinta Sirait, ISD Executive Director, emphasizes that inputs from other services sectors shall be discussed in upcoming Dialogue Series. Other sectors are not less important because various sectors in services interconnect and interlink one to each other and also have direct correlation with other sectors such as manufacturing, resources, and many more.

“We have done all these efforts to promote growth and greater efficiency in Indonesia services sectors. Today’s forum also launches the first ISD Policy Recommendation in 2015,” said Ms. Sinta Sirait.

Furthermore, she also mentions that ISD has worked together with the Coordinating Ministry for Economic Affairs Republic of Indonesia regarding President Jokowi-VP Kalla Deregulation Package I—IV. ISD consolidated some issues based on practices of its members in daily operation.

The Dissemination of ISD Policy Recommendation is officially opened by Mr. Chris Kanter and Mr. Lukita Dinarsyah Tuwo, Secretary of the Coordinating Ministry for Economic Affairs Republic of Indonesia, and followed by presentation about the importance of services sectors and recommendation points by Mr. Yose Rizal Damuri, ISD Board of Founders & Head of the Department of Economics, Centre for Strategic and International Studies (CSIS).

There are also several Panelists supporting this forum. They are Mr. Bachrul Chairi (Director General for International Trade Cooperation Ministry of Trade Republic of Indonesia), Mr. Erwin Raza (Assistant to Deputy Minister for National Logistics Development, Coordinating Ministry for Economic Affairs Republic of Indonesia), Ms. Shinta W. Kamdani (ISD Board of Founders & CEO of Sintesa Group), and Mr. Noke Kiroyan (ISD Board of Founders & Founder of Kiroyan and Partners).

Ms. Shinta W. Kamdani underlines, “In Logistics and Distribution sectors, integration of Inaport and Inatrade in the Indonesia National Single Window (INSW) by all related ministries is key factor of efficiency.”

She suggests the regulators to do regulatory check-up or review of many regulations in Distribution services. For example, in licensing and franchising, the regulators should give more facilitations because the current condition is burdensome for private sectors. Special attention is also given to e-Commerce, especially about access to capital because domestic sources are undoubtedly not sufficient.

On another hand, Mr. Noke Kiroyan emphasizes the importance of the Government’s support in Energy Services.

“We highly appreciate the Government’s decision to postpone the increment of royalty tariff for coal mining. We truly hope that the Government would provide incentives for universities in order to create more engineers because they are very critical for national development,” pronounced him.

Besides giving highlight about diaspor program, he also asks the Government to streamline regulations about professional/high-skilled workers and not rendering the lowest price as standard for bidding.

“Therefore, companies that provide Energy services are motivated to upgrade their skills and qualities and able to win more complex and high-valued bidding to increase their capacities,” added Mr. Noke Kiroyan.

For ICT services, Mr. Yose Rizal Damuri mentions that the Indonesia Broadband Plan (Presidential Decree Number 96/2014) with its fixed and mobile infrastructures is very critical to be implemented at earliest convenience.

According to him, the Indonesia Broadband Plan, which targets the increment of connectivity, will be implemented through six main programs and five priority sectors: e-Government, e-Education, e-Health, e-Logistic, and e-Procurement.

Yose Rizal Damuri also conveys that Government Regulation Number 82/2012, which requires all data centers to be located in Indonesia, is unrealistic. This policy might impact to high cost for both domestic and foreign investors. He suggests the Government to otherwise implement international security standard to ensure the safety of transaction and customer protection.