REPUBLIKA.CO.ID, PALEMBANG -- Indonesia's Chamber of Commerce and Industry (Kadin) was optimistic that the government policy initiatives to issue a package of business regulation, that will take effect in February 2014, will encourage the emergence of entrepreneurial spirit to the nation.

Chairman of Kadin Suryo Bambang Sulisto said this package is a positive step to continue to maintain the pace of economic growth and, on the other hand, to lower unemployment rate.

The policy is considered capable to maintain the momentum of economic growth and will have a good impact for business climate.

"Kadin certainly welcomes the policy package that allows people to start their business activities on quick and easy way. The policy will also accommodate the demands of those who want to further increase the number of small and medium enterprises (SMEs)," he said, in a written statement, on the sidelines of National Leadership Meeting of the Indonesian Chamber of Commerce in Palembang, South Sumatra.

He added that an increasing number of SMEs is seen as strategic considering that SMEs have proved able to contribute positively to the growth rate of the Indonesian economy, especially in the face several economic challenge such as the last 2008 economic crisis.

He estimated that the global economic downturn will continue up to 2014.

The unhealthy global condition could disassemble the foundation of Indonesia's economy which has not been too strong, and potentially weaken the positive trend of economic growth rate in Indonesia.

Furthermore, he explained that in 2014, Indonesia's economy is still facing several challenges and is very susceptible to the development of the global economic crisis. Nevertheless, there are signs that Indonesia is still an attractive country for investment.

"Domestic Investment (PMDN) and Foreign Direct Investment (FDI) still show an increasing trend. But the problem of competitiveness is still unresolved," he said.

Ed: Endah Hapsari

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