Jakarta – The business community is unimpressed with the newly launched financial policy package and doubts the seriousness of the authorities in implementing the contents of the policy aimed at reviving business activities in the country.

While the implementation of the previous economic packages on the real sector remain unclear, the business community will not put too much hope in the latest policy, chairman of the National Economic Recovery Committee (KPEN) Sofjan Wanandi said.

"What the business community needs now is concrete action for the real sector. I believe the latest policy is more on macroeconomic issues which have less impact on the real sector," said Sofjan, who is also chairman of the Indonesian Employers' Association (Apindo).

The government and the central bank signed a joint decree Wednesday to improve coordination between fiscal and monetary authorities and help reform financial markets by issuing a financial policy package.

Coordinating Minister for the Economy Boediono said it was expected to accelerate reforms in the banking sector, non-bank financial institutions and in capital markets, as well as enhance businesses' access to capital.

"The points in the package are basically good. But I doubt that it can be implemented like those of the previous packages. What we expect is that the package can help accelerate the reduction in interest rates," Sofjan said.

Although the Central Bank cut its benchmark interest rates by 25 basis points to 12.25 percent Thursday, the rate is still considered too high for the business community. Lower interest rates are needed for businessmen to obtain more affordable loans to expand their businesses.

Improving the investment climate at home and a further cut in domestic interest rates are seen as crucial to help revive business activities, to enable the country to achieve higher economic growth and help resolve the pressing unemployment problem.

Early this year, the government issued more or less similar packages for improving the investment climate and for accelerating infrastructure development. However, no concrete policies have materialized so far from the packages.

Meanwhile, chairman of the National Banks Association (Perbanas) Sigit Pramono said the package would at least help state-owned banks accelerate the restructuring of their massive non-performing loans (NPLs).

"The package will make our job easier because there will be a separation between funds owned by the government and the state banks. This is needed to allow state banks to carry out loan restructuring measures commonly adopted by privately owned banks," said Sigit as quoted by Antara.

According to Sigit – who is also president director of state-owned Bank Negara Indonesia – state banks were having difficulties in providing debt hair cuts on troubled loans because there funds owned by government and the banks were mixed.