REPUBLIKA.CO.ID, JAKARTA -- Bank Indonesia voiced support to the government policy to accelerate structural reform to create a stronger supporting environment for investment.

"Improvement of economic efficiency as a whole will make Indonesia very attractive, not only because of its huge domestic market, but also as a global production base," Agus Martowardojo, the central bank governor said at a bankers dinner on Thursday night.

Martowardojo said strategic and tactical steps have been accelerated by the cabinet at the knots of urgent structural reforms. Among the knots being strengthened were physical connectivity mainly maritime connectivity and its integration with land connectivity such as railway, and digital connectivity, he said.

"Improvement in the knots, we believe, will significantly cut logistic cost, that the business sector would be more competitive in the global market, and equitability of cost efficiency would be created all over the archipelago," he said.

He also noted steps of acceleration of structural reform to reduce business micro risk. Martowardojo was confident that investment climate all over the country would be better ahead as a result of improvement in business facilities, quality of public services and management and improvement of human resources in the bureaucracy.

"No less important is the government attempt to launch fiscal reform. Product based subsidy so far has reduced opportunity to strengthen basic capital for development," he said.

Martowardojo said improvement of human resource quality, and development of infrastructure, capacity of innovation and institutions intended to bring the country to the ranks of advanced nations have been hampered by misappropriation of subsidy.

"Therefore, we fully support the step taken by the government to appropriate BBM subsidy for people based subsidy and for infrastructure development," he said.

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