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Sunday, June 27, 2010

UCLG-ASPAC Congress Discuss Role of Private In Regional Economic Growth

Conferences "UCLG Conference on Local Economic Development and Investment Strategies" held at the Hotel Pacific (25-27/06/2010) yesterday, and then continued with a further meeting at Hotel Novotel dated June 26, 2010 on "Local Financial Development Regional Workshop" in cooperation by UNITAR (United Nations Institute for Training and Research) and also supported by the European Union, especially France, plus one more meeting in the same place on "Urban Strategic Planning Workshop", which is supported by the Central Office in Barcelona UCLG emphasis will be an important side reinforcement synergy development in the area of government institutions with the private sector.

"A document" policy paper "will be taken at the meeting of" World Summitt "in Mexico in November 2010. A city will thrive if the strengthening of Government policy is supported by all levels of society especially the private sector. New investment climate is conducive, if policies of development provides adequate space for the private sector to flourish. Therefore several approaches from the Government side needs to be done, "said Assistant to the Economic and adding Pemko Batam, Syamsul Bahrum.

He states, an approach that involves governments among others, strengthen the regulation that supports private sekror can implement real economic function effectively and efficiently. In the sense of not creating rules that complicates the process of industrialization, commercialization, and economic transactions in the real sector. Opening the tap for strengthening the production structure of import and export processes to simplify and mempermurah supported by the regulation to pre-qualify the smooth production process. Furthermore, the private sector also strengthened the protection of foreign economic penetration of a certain level require the regulation and protectionism.

"Although this policy is less effective, at least, the policy protects the producer (a group of businessmen) are also part of a policy to protect consumers (general public). It is important to realize that the manufacturers who produce goods also consists of workers who need job security and income improvement kelansungan which was also obtained from the company's profit. Other policies that "pro-business" and "consument protection" is a direction in terms of scenario building. The private sector will follow the development guidelines contained in the Government Medium Term Development Plan (Medium-Term Development Plan for the five yearly in the long term become RPJP (Long-Term Development Plan) -25 yearly, "said Arifin.

Consistency in this context needs to exist, because in-RPJP RPJM all that is achieved in the context of the City (the broader concerns of all sectors) rather than the Government of the City (more narrow only in the public budget-Government). Therefore, if the only reference to the "local budgetting system" in the context of the Local Government (Pemko Batam) not more than Rp1, 3 trillion. Then what can be expected to strengthen macro-economic structure of cities should be in the economic growth of 7 percent or more?. If the number of cumulative government budget (APBN-Provincial Budgets and including the Board of Cultivation Batam Batam) not more than Rp.4, 9 trillion.

"If we estimate the strength of the private sector in the GDP of Batam to strengthen the economic structure in the level of 7.4% growth, and how large the contribution of the allocation of private funds that continue issued?. If we refer to the strong public interest to build and almost every day we see the board of congratulations on the inauguration of a business, then we can put large numbers relative velocity of money and the shifting role of commodities in all lines and multi-sector (property, consumption, transportation , convection, insurance, banking, travel, manufacturing or fabrication, etc.). Therefore, do not ignore the economic power of the private sector in creating employment and state revenue and financial income (PAD), "said the holder of a master's degree from the University of Queensland Australia.

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