Sandiaga Uno: Entry Cost System Better Than Quota System

CEO of Saratoga, Sandiaga S Uno views that the government policy related to the export -import quota system is not effective. He mentioned this as a speaker in talk show entitled "Farmer Welfare and Food Security, National Leaders’ Vision,” held as part of the 7th Agrinex Expo in the cooperation of IPB, Performax, and the Ministry of Agriculture.

  

According to him, the quota system can trigger unhealthy practices. He added that for entrepreneurs, and the entry tariff system is more acceptable and more effective. He says that with the entry tariff system there will be competition among businesses, and so the prices of food products will compete or tend to be lower.

 

Sandiaga exemplifies the telecommunications business that is growing very rapidly. "In the past when cell phones first came out they and pulses were very expensive because of lack of competition, but now cell phones and pulses are very cheap because of a lot of competition," he explained. Another example is in the airline business – now the airfares are relatively cheaper.

 

Moreover, he adds that cartel occurs because it is induced by the government policy alone. The main objective of trade and entrepreneurs is profit-oriented. Entrepreneurs always see opportunity, if there is no conducive a policy. Thus, there must be a clear system of punishment and reward.

 

Meanwhile, with regard to food, the Indonesian Coop Foundation Chairman, Adi Sasono said, to protect the people, the state must be able to control the price. "The market is not always perfect. In some principal aspects, the state should be able to intervene in the market. In addition, the state should have a stock, hold the authority of regulation, should be able to control export and import in order to protect the public interest. (Mtd)