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Corporate Indonesia is in robust health judging from its stellar performance in the first nine months of 2011. Across the board, many companies, especially in the private sector are reporting healthy profits.

This is good news not just for business owners but for the country as a whole. It is clear that the private sector is the throbbing engine of economic growth and the main creator of new jobs. Corporations are also the biggest contributors to the state budget in terms of taxes.

It is thus critical that the government recognize the importance of business to national development. The private sector is in fact providing many public services that supplement the government’s efforts. By investing in education, health and public transportation, the private sector is playing an increasingly key role in bolstering the country’s foundations.

How can the government empower the private sector even further? By cutting red tape, dismantling the burdensome regulatory environment and investing in infrastructure. It is to their credit that businesses are able to record healthy profits despite the high cost of operating in Indonesia.

The government should lower corporate taxes so that profits can be invested back into the company. This creates new jobs and increases the standard of living for all Indonesians. The government may forego some short-term revenue, but the long-term payback will be massive.

Corporations are fortunate that the overall economic environment today is favorable. Accelerating growth and low borrowing costs have created ideal conditions for growth and expansion within the corporate sector. But these conditions may change very quickly given the overall global economic challenges.

It would thus be wise for both private business and the government to invest in the future. Now is the perfect time to enhance both our hard infrastructure as well as our soft infrastructure.

Companies should use a portion of their profits to train their workers in new skills while the government lays the foundations for sustainable long-term economic growth and progress. The two sides must understand each other’s needs and pursue a common goal.