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The government , it seems, is listening to the voice of reason. The latest move to scrap duties for imported machinery and raw materials for seven vital industries will certainly be a welcome boost for business .

The new ruling, which exempts import duties for a host of vital industries, will come into effect on Dec. 16 and will thus allow these industries to plan ahead for 2010.

The regulation covers transportation, telecommunications, public health, tourism and culture, as well as supporting services for mining, construction and ports and harbors.

The new facility is part of the government’s Rp 73.3 trillion ($7.9 billion) fiscal stimulus package for this year and will stay in effect for two years. If successful, and there is no reason to think it will not be , the policy should be made permanent.

Indonesia has long been known as a high - cost economy due to the layers of duties and other types of fees levied on businesses. The exemption of the 5 percent import duty on these vital industries is a welcome start to lowering business costs , but more still need s to be done.

Hopefully, the government will not stop there. It needs to further reduce business costs by doing away with unnecessary red tape and licenses , which make doing business not only costly , but frustrating as well .

In today’s competitive environment, businesses need all the help they can get. In a world still reeling from the recent global crisis, any government assistance in cutting down business cost s is a welcome move.

The government can give businesses a shot in the arm by lower ing taxes and other fees.

Not to be forgotten is that if the government really wants to strengthen industry , it should also make sure that the necessary infrastructure is in place, or at least is being planned. The blackouts that have plagued the country for the past weeks need to be addressed as quickly as possible.

It would also be hugely helpful for businesses if the government allowed the further opening of the economy , as increased competition would spur local companies to be more efficient and innovative.

While the government has a duty to protect local industries against dumping and cheap foreign products, it must encourage Indonesian companies to improve.

Industries and businesses should no longer merely look to the government for help and protection, but should also strive to become more competitive and efficient if they want to survive, especially in the face of the growing tendencies for free trade, including in the region.

One area where the government can help industry is by investing in technical education. Even though the country has a vast labor pool, skilled workers are in short supply. Over the long term, more industries would spring up, deepening the country’s manufacturing base. Such a program would be both pro-jobs and pro-poor .