BKPM seeks to complete new investment bill<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The Investment Coordinating Board (BKPM) said on Monday the foot-
\ndragging process in the drafting of a crucial investment bill was
\nmainly caused by stiff resistance from the Ministry of Forestry.<\/p>\n
The strong rejection of the ministry had forced the state
\nsecretary to send the bill back to the Office of the Coordinating
\nMinister for the Economy for further study, putting the bill's
\nstatus in jeopardy, BKPM Chairman Theo F. Toemion lamented.<\/p>\n
\"The bill stipulates that investment in the forestry sector
\nwill be coordinated by BKPM. They strongly object to this, which
\nhas stalled the progress (in drafting) of the bill,\" Theo said
\nafter attending a hearing with House of Representatives
\nCommission VI on trade and industry.<\/p>\n
Theo added that his office received an official letter from
\nthe ministry -- the minister was then M. Prakosa -- about three
\nmonths ago stating its rejection of the bill.<\/p>\n
Under existing regulations, any bill proposed by one or more
\nministry has to pass through the state secretary before being
\nsubmitted to the House for deliberation.<\/p>\n
The new investment bill is meant to replace the existing 1967
\nForeign Investment Law and 1968 Domestic Investment Law -- both
\nexclude investment in certain sectors such as forestry.<\/p>\n
Aside from the forestry sector, under the existing laws
\ninvestment in sectors such as mining, banking and other financial
\nservices, stock and currency markets are not included in BKPM's
\nportfolio.<\/p>\n
The bill -- which contains clauses to open up new sectors to
\nforeign investors -- is expected to help boost foreign direct
\ninvestment (FDI), a crucial element to help the country generate
\neconomic growth at a level sufficient to deal with the chronic
\nproblems of unemployment.<\/p>\n
Besides opening up new sectors to foreign investment, the new
\nbill would also contain measures to minimize the obstacles facing
\nforeign investors, such as excessive red tape.<\/p>\n
The media and transportation are among sectors to be opened up
\nfor foreign ownership.<\/p>\n
President Susilo Bambang Yudhoyono has pledged to boost growth
\nto pre-crisis levels of 6 percent to 7 percent to help create
\nmore jobs for the millions of unemployed and job seekers entering
\nthe market each year.<\/p>\n
Before the crisis, investment was one of the country's main
\neconomic growth engines, but it only accounts for about 20
\npercent of the growth in gross domestic product (GDP), with
\nconsumption contributing more than 70 percent.<\/p>\n
Legal uncertainty, security fears, labor disputes and poorly
\nmanaged decentralization are among a few of the problems that
\nhave put a brake on investment.<\/p>\n
BKPM data showed that as of October, approvals for foreign
\ndirect investment (FDI) stood at US$8.85 billion, or a 11 percent
\ndecline from the same period last year.<\/p>\n
Elsewhere, Theo said that he had asked to meet Malam Sambat
\nKaban, the new Minister of Forestry, to discuss the problem.<\/p>\n
\"Hopefully, we'll be able to meet soon and find a solution to
\nthis problem,\" Theo said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bkpm-seeks-to-complete-new-investment-bill-1447893297",
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"sponsor": "Okusi Associates",
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