Thursday, November 20, 2008

Jakarta to implement business retribution holiday

The Jakarta administration will soon erase all business retribution to boost local businesses, head of the Jakarta Small-Medium Enterprises and Cooperatives Agency Ade Harsono said Thursday.

He said the total retribution generated to date, which is around Rp 15 billion, was negligible.

"The amount is nothing when compared to society's entrepreneurial spirit," Harsono told Kompas.com.

"I have suggested this initiative to the State Minister for Small-Medium Enterprises and Cooperatives in November," he said. "If this has already taken place in many countries abroad, why not in ours?"

According to Harsono, Jakarta governor Fauzi Bowo has already approved the initiative.

"The governor approves the erasure blueprint. Businesses will still need to apply for operating permits, but no fee is incurred," he said, adding that once a particular business is running, it will be taxed instead.

Apart from a business retribution holiday, the Jakarta administration will also hold various expos at home and abroad, specifically to support the development of small-medium enterprises.

The agency reportedly has set aside Rp 15 billion for its trade promotion budget next year.

"The plan is to hold expos in six countries and also within the country," Harsono said.

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