Economists believe increasing foreign's role in strategic sector and Indonesia's economic development prove government is weak and has no direction towards national economic independence.
Ahmad Erani Yustika, professor of Brawijaya University, forced the government to immediately correct the direction of the current economic policy. The government is hoped not to allow foreign ownership in strategic sectors such as banking industry and oil/gas industry.
Role and Ownership in Strategic Sectors
Ahmad Erani Yustika said: "If foreigners are getting more dominant on its role and ownership in strategic sectors, then a question might arise about our national independence. We will not be able to be more independent due to the foreign domination."
According to him, the foreign funding should be considered as complementary. To cover the lack of funding, the government is called for re-evaluating the budget and to be able to seek other alternative sources for funding, instead of allowing room for foreign domination and foreign loan.
He said: "Whether the fund is available or not is not important. The most important is our vision on economic development. Infrastructure definitely needs to be developed, but we can manage to produce a different plan so that the budget is right."
Regarding the role of foreign ownership in banking, he suggested that it should be limited to a maximum of 25 percent. That goes with the other strategic sectors, such as oil and gas industry. If that is not implemented, then the government will meet some difficulties in controlling an abnormal economic situation in the future and the condition will be dangerous for national economy.
Meanwhile, economist of Indef Didik J. Rachbini believes the development of foreign role in strategic sectors, such as banking, has been very worrying due to unproportional regulation since the 1998 crisis and has never been reviewed ever since.
Increasing Direct and Portfolio Investments
According to him, foreign role is getting larger proven by the increasing direct and portfolio investments. Meanwhile, domestic industry continues to experience drawbacks.
He said: "Basic problem lies on the foreign ownership management regulation in strategic sectors, such as banking, in which the regulation is the most liberal and naive compared to other countries."
Moreover, he also force the government to revise Government Regulation (PP) No. 29 in 1999 which opens opportunity for foreign ownership in banking up to 99 percent. The government is called for cooperation with Central Bank (BI) to limit it. The People's Representatives Council (DPR) is also called for its support on the limitation.
Ahmad Erani Yustika, professor of Brawijaya University, forced the government to immediately correct the direction of the current economic policy. The government is hoped not to allow foreign ownership in strategic sectors such as banking industry and oil/gas industry.
Role and Ownership in Strategic Sectors
Ahmad Erani Yustika said: "If foreigners are getting more dominant on its role and ownership in strategic sectors, then a question might arise about our national independence. We will not be able to be more independent due to the foreign domination."
According to him, the foreign funding should be considered as complementary. To cover the lack of funding, the government is called for re-evaluating the budget and to be able to seek other alternative sources for funding, instead of allowing room for foreign domination and foreign loan.
He said: "Whether the fund is available or not is not important. The most important is our vision on economic development. Infrastructure definitely needs to be developed, but we can manage to produce a different plan so that the budget is right."
Regarding the role of foreign ownership in banking, he suggested that it should be limited to a maximum of 25 percent. That goes with the other strategic sectors, such as oil and gas industry. If that is not implemented, then the government will meet some difficulties in controlling an abnormal economic situation in the future and the condition will be dangerous for national economy.
Meanwhile, economist of Indef Didik J. Rachbini believes the development of foreign role in strategic sectors, such as banking, has been very worrying due to unproportional regulation since the 1998 crisis and has never been reviewed ever since.
Increasing Direct and Portfolio Investments
According to him, foreign role is getting larger proven by the increasing direct and portfolio investments. Meanwhile, domestic industry continues to experience drawbacks.
He said: "Basic problem lies on the foreign ownership management regulation in strategic sectors, such as banking, in which the regulation is the most liberal and naive compared to other countries."
Moreover, he also force the government to revise Government Regulation (PP) No. 29 in 1999 which opens opportunity for foreign ownership in banking up to 99 percent. The government is called for cooperation with Central Bank (BI) to limit it. The People's Representatives Council (DPR) is also called for its support on the limitation.
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