BKPM revokes 88 investment licenses<\/p>\n
JAKARTA (JP): The Investment Coordinating Board (BKPM) revoked
\n88 investment licenses in the period between Jan. 1 and July 15,
\nthis year.<\/p>\n
According to the investment board, 63 of the revoked licenses
\nbelonged to domestic investors and the other 25 to foreign
\ninvestors.<\/p>\n
The investment value originally planned for the 63 domestic
\ninvestment projects reached Rp 900 billion (US$384 million),
\nwhile that for the 25 foreign investments was $458 million.<\/p>\n
The investment board did not disclose the reason of the
\nrevocations.<\/p>\n
According to an existing regulation, investment licenses may
\nbe revoked if the investors fail to start constructing their
\nprojects within three years of being issued a license.<\/p>\n
In a report distributed to journalists following the closing
\nceremony of the board's three-day national coordination meeting
\nyesterday, the board said the number of revoked licenses was much
\nhigher than the 40 revoked in the same period of last year.<\/p>\n
The licenses revoked in the Jan. 1 to July 15 period of last
\nyear composed of 32 for domestic investment projects with planned
\ninvestments of Rp 32 billion, and eight licenses for foreign
\nprojects with planned investments of $29.3 million.<\/p>\n
The board did not explain the profiles of the projects but
\nthey were most likely related to cement production and oil
\nrefinery.<\/p>\n
Minister of Investment Sanyoto Sastrowardoyo said recently
\nthat most companies licensed by his office to build new cement
\nfactories and oil refineries had delayed the construction of
\ntheir projects.<\/p>\n
Sanyoto, who is also the chairman of the investment board,
\nsaid the delays were mostly caused by the investors' difficulties
\nin raising investment funds.<\/p>\n
He said his office has since 1991 approved 46 investment
\nprojects related to the establishment of new cement factories but
\nonly six of them had so far been realized.<\/p>\n
Sanyoto said only one of the 12 planned oil refineries
\napproved by his office since 1994 had started construction.<\/p>\n
Unlike those in the cement industry, most oil refinery
\ninvestment projects were delayed due to uncertainty in the
\nmarketing of processed oil products on the domestic market.<\/p>\n
Monopoly<\/p>\n
According to the law, state-owned oil company Pertamina is the
\nonly party allowed to distribute and market oil products
\ndomestically.<\/p>\n
The government has been working on the amendment of the law to
\nend the monopoly given to Pertamina and to allow private
\ncompanies to enter the refinery business. Despite having worked
\non the amendment for years, no significant progress has been
\nmade.<\/p>\n
The board also said yesterday that domestic investment
\napprovals rose by around 127 percent in value to Rp 70.6 trillion
\nbetween Jan. 1 and July 15 from Rp 31 trillion in the same period
\nof last year. Meanwhile, foreign investment approvals declined by
\n2.7 percent to $21 billion from $27.2 billion.<\/p>\n
According to the board, Japan topped the list of 10 biggest
\nforeign investors between Jan. 1 and July 15, with total
\ncumulative investments of US$5.16 billion.<\/p>\n
Britain was in the second slot with investments of $2.53
\nbillion, followed by Singapore at third with $1.68 billion.<\/p>\n
Kuwait was forth, with investments of $1.66 billion, Thailand
\nfifth with $1.6 billion, Malaysia sixth with $1.15 billion and
\nthe Netherlands seventh with $1.21 billion.<\/p>\n
Hong Kong, the United States and South Korea were eighth to
\n10th, with investments of $1.04 billion, $509 million and $458
\nmillion respectively. (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bkpm-revokes-88-investment-licenses-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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