{
    "success": true,
    "data": {
        "id": 1022052,
        "msgid": "bkpm-to-maintain-divestment-policy-1447893297",
        "date": "1994-04-26 00:00:00",
        "title": "BKPM to maintain divestment policy",
        "author": null,
        "source": "JP",
        "tags": null,
        "topic": null,
        "summary": "BKPM to maintain divestment policy JAKARTA (JP): The government will maintain its divestment policy despite criticism from foreign investors and growing regional competition, says an official of the Investment Coordinating Board (BKPM). \"The government will maintain the divestment rule because it is bound to do so by the Guidelines on State Policy (GBHN),\" Sugihono Kadarisman, deputy chairman of BKPM, told The Jakarta Post during a seminar on joint ventures here yesterday.",
        "content": "<p>BKPM to maintain divestment policy<\/p>\n<p>JAKARTA (JP): The government will maintain its divestment <br>\npolicy despite criticism from foreign investors and growing <br>\nregional competition, says an official of the Investment <br>\nCoordinating Board (BKPM).<\/p>\n<p>\"The government will maintain the divestment rule because it <br>\nis bound to do so by the Guidelines on State Policy (GBHN),\" <br>\nSugihono Kadarisman, deputy chairman of BKPM, told The Jakarta <br>\nPost during a seminar on joint ventures here yesterday.<\/p>\n<p>The Guidelines on State Policy, set every five years, are <br>\nvirtually impossible to alter. The next policy package will go <br>\ninto effect in April of 1999.<\/p>\n<p>The government's deregulation package of October 1993 limits <br>\nforeign ownership in direct investment or joint venture projects <br>\nwith equity of between US$1 million and $50 million, to 80 <br>\npercent. Within a 20-year period after commercial production, <br>\nforeign investors must divest until the ownership composition is <br>\nat least 51 percent in favor of their domestic partners.<\/p>\n<p>Although the October 1993 package allows initial 100 percent <br>\nforeign ownership with capital above $50 million, the divestment <br>\nregulations remain the same.<\/p>\n<p>Indonesia is the only Pacific Rim country with this policy. <br>\nSome analysts and investors say it makes Indonesia a less <br>\nattractive option.<\/p>\n<p>\"We have heard complaints from investors about the divestment <br>\npolicy,\" Sugihono said. \"However, we are not going to dismantle <br>\nit in the near future.\"<\/p>\n<p>\"The government cannot change the GBHN, which is the <br>\nfoundation of the divestment policy,\" he added.<\/p>\n<p>BKPM statistics show that foreign investment in Indonesia went <br>\ninto a tailspin last year. They reveal that Japan, Indonesia's <br>\nlargest investor, put in almost 50 percent less in 1993 than it <br>\ndid in 1992. Japanese investment dived from $1.5 billion to $815 <br>\nmillion last year.<\/p>\n<p>Overall, foreign investments fell by 21 percent from $10.32 <br>\nbillion in 1992 to just over $8 billion last year.<\/p>\n<p>Deregulation<\/p>\n<p>Sugihono also stated that the government will release more <br>\ncomprehensive deregulatory measures later this year.<\/p>\n<p>He did not specify the exact time of the issuance of the new <br>\npackages nor indicate which sectors the new policies will cover.<\/p>\n<p>\"Maybe in June,\" he said when confronted with rumors about the <br>\ntime of issuance.<\/p>\n<p>The new packages, however, will be more \"business-oriented,\" <br>\nhe said.<\/p>\n<p>Sugihono said BKPM will always try to \"accommodate\" business <br>\ninterests \"as much as possible\". (04)<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/bkpm-to-maintain-divestment-policy-1447893297",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}