Warned about possible impact of rupiah's depreciation

Trade Minister Mari Elka Pangestu called on exporters and producers who use imported goods to anticipate a possible increase in their production costs due to the rupiah's depreciation.
"Exporters who use imported goods will see an increase in their operational costs because of the rupiah's depreciation. They need to anticipate this," Mari said here Tuesday.
The rupiah's depreciation and the increased crude oil price would lead to higher production costs for exporters and producers. Thus they must reduce their other expenditures by improving operational effectiveness as well as productivity.

But Marie also said the ruppiah's current exchange rate at 9,850 against the US dollar was yet disturbing Indonesia's export performance.
"It is now too early to make a judgment," the minister added.
On efforts to simplify bureaucratic procedures for foreign investors, Marie said, what needed to be done could be summarized in two things, namely reducing unnecessary regulations and providing guideline on the required documents.
"There must be a guideline on the required documents, timelines, cosst and transparent processes," she said.

Another policy that needed to be pursued was better coordination between the central and regional administrations, and among the various government departments. A lack of such coordination had become one factor hampering foreign investment, she said.
In addition, the government has encouraged development of infrastructure that support investment such as tollroads, ports and railways that would speed up the flow and delivery of goods.

"Those who can deliver goods faster and cheaper will win. Thus, efficient supporting services are urgently needed for us to win the competition," she said.
About incentives for investors, Marie said, the question was being discussed within the goverment. The incentives might be given not only in the form of tax exempetions or cuts but also of better services. * ant

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