Riffrag Business & Finance Report

Nearly three-quarters of corporate chief executives (chief executive officer / CEO) of the world view that economic growth is not stable as a potential threat to their business within the next 12 months. In addition, nearly one-third of CEOs say that they are ‘very concerned’ by global economic outlook.

Annual survey titled PwC PricewaterhouseCoopers 14th Annual Global CEO survey says about 61 percent of respondents from among the top executives were assessing other common threats that will be faced is the government’s reaction to the fiscal deficit.

Additionally, 60 percent of CEOs worry that overlapping regulation, the threat of exchange rate volatility (54 percent), and capital market conditions are unstable (52 percent) and protection (40 percent). Meanwhile, the specter of inflation revealed by less than a third of respondents.

Among the threats to the CEO’s business, 56 percent of respondents worried about the availability of talent is required, followed by an increase in taxes (55 percent), and a permanent shift in consumer behavior (48 percent).

“The lack of potential talent of special concern in Asia Pacific, Central and Eastern Europe, Middle East, and Africa,” PwC said quoting the survey results.

Other global risks disclosed CEOs including political instability (58 percent), scarcity of natural resources (34 percent), climate change (27 percent), and natural disasters (25 percent).

For that, almost half of CEOs said the government’s priority should be emphasized in state infrastructure improvements. In addition, the government of a country is expected to create and maintain a skilled workforce, and ensuring the stability of the financial sector and access to affordable capital.

“More than 60 percent of CEOs agree that public spending cuts or tax increases would slow economic growth in their countries,” writes the results of the survey.

In fact, 53 percent of CEOs say their companies will increase the tax consequences of the government reaction to increase the public debt. Just over a third of CEOs say their companies have made strategic changes due to public spending cuts or tax increases both domestically and abroad.

Responding to the survey results, Chief Economist of PT Bank Danamon Tbk, Anton Gunawan, say, a number of global CEOs mainly from western countries are still worried about the investment climate constraints in some countries of the world.

“Not to mention, they still faced with the conditions of corporate recovery (post-shocks of economic crisis),” said Anton told VIVAnews.com in Jakarta.

Anton rate, especially in Indonesia, direct investment from European companies and the United States is not as big as business expansion coming from Asia. “If from Asia, many Korean firms, China, Japan, and India to Indonesia,” he said.

However, according to him, to invest in portfolio, a number of world companies have been so heavily into the country since last year. “Unlike a direct investment, portfolio foreign investment into Indonesia has been a lot,” he said.

PwC survey was conducted with 1201 respondents CEO interviews in 69 countries in the last quarter of 2010. Viewed from the region, as many as 420 interviews were conducted in Western Europe, 257 (Asia Pacific), 221 (Latin America), 148 (North America), 98 (Eastern Europe), and 57 in the Middle East and Africa.

Countries in Asia-Pacific consists of Australia (40), China (39), Hong Kong (7), India (40), Indonesia (1), Japan (75), Korea (15), Malaysia ((11), Singapore (4), Taiwan (10), Thailand (5), Vietnam (10).

JAKARTA – Policy Institute for Procurement of Goods / Services (LKPP) projected funding needs for the acceleration of the implementation of an electronic auction of goods and services (e-procurement) approximately Rp1, 5 trillion-Rp2 trillion.

Plt Head LKPP Agus Rahardjo said, if the funds of this magnitude for the acceleration of e-procurement can be completed in two years. According to him, the acceleration of the implementation of e-procurement within the framework of efficiency and effectiveness of state financial budget on the procurement of goods / services is very possible.

“But indeed, this requires no small cost. We never counted, if they want to finish in two years, the budget could Rp1, 5 trillion-Rp2 trillion,” said Agus, a statement to okezone, in Jakarta, Tuesday (22 / 6 / 2010).

Agus explained, is to calculate the acceleration of the implementation of the availability of electronic auction facility in any government agencies both national and local. Rp2 trillion fund to help cover server and finance human resource training to each agency.

However, call Agus, until recently the allocation of expenditure for the accelerated implementation of e-procurement is still relatively low. This year, for example, the development of e-procurement e-procurement directorate carried LKPP budget receives only Rp14, 9 billion.

Still, said Agus, the performance of the implementation of e-procurement has significant impact on the effectiveness and efficiency of the procurement budget in recent years.

“Presentation saving reaches 15 percent in 2008, and 17 percent in 2009, and 15 percent on average the first five months of 2010 with the potential to continue to rise considering the realization of the auction in a few months remaining in 2010,” he explained.

Data e-procurement implementation progress LKPP noted, the realization of the procurement package through an electronic auction package worth Rp4 reached 2692, 025 trillion until the first week in June 2010. This electronic auction conducted 120 local agencies by utilizing central-56 Electronic Procurement Service (LPSE) spread in 23 provinces.

Electronic auction continued to increase compared to the realization of the previous years. In 2009 for instance, the realization of an electronic auction package worth Rp3 reached 1725, 37 trillion, up from the 33 packages valued at Rp52, 5 billion.

Growth efficiency of the budget also continues to increase with an average of 16 percent. In 2008, the difference reaches a maximum and auction results Rp6, 6 billion, then rose to Rp518 billion and Rp395, 5 billion in the first five months of 2010.

Electronic Procurement Director Ikak G Patriastomo said the implementation of an electronic auction is increasing from year to year. “Though it has not become a liability, the development of e-procurement implementation is very encouraging and the results are very promising,” he said.

Ikak calculation based, total package procurement until today has reached 4720 package worth Rp8 trillion. But once offered through an electronic auction, he explained, achieved savings of approximately Rp1 trillion entire procurement package.

According Ikak, implementation of electronic auction even got high appreciation from the local government. In 2010, the Province of West Java is still the first rank of the total auction package that facilitated electronic auction, as many as 806 packages, far above the auction package through the Ministry of Finance as many as 155 LPSE package