BKPM wants monopoly in plantation permits<\/p>\n
JAKARTA (JP): The Investment Coordinating Board (BKPM) is
\nseeking the President's approval to become the sole agency
\nresponsible for issuing business permits in the plantation
\nindustry, a board executive said here on Tuesday.<\/p>\n
The vice chairman of BKPM, Andung A. Nitimihardja, said
\npooling the licensing process under BKPM would cut the
\ncomplicated bureaucratic procedures faced by potential investors
\nwhen applying for business permits.<\/p>\n
Andung said potential investors were currently required to
\nobtain licenses from at least four government offices before they
\ncould develop a plantation.<\/p>\n
Investors must obtain a forest relinquishment permit from the
\nMinistry of Forestry and Plantations, the right-to-use-land title
\nfrom the National Land Agency (BPN), a location permit from the
\nlocal administration and investment approval from BKPM.<\/p>\n
Andung said such complicated licensing procedures often
\ndiscouraged potential investors.<\/p>\n
\"We have received several complaints from investors about the
\ncomplicated procedures. The state minister of investment\/BKPM
\nchairman has met with the minister of forestry and plantations
\nand the chairman of BPN to discus the possibility of pooling the
\nlicensing procedure under one government office,\" he said.<\/p>\n
Andung said a number of potential oil palm investors were
\nunable to realize their plans to open oil palm plantations
\nbecause of the complex licensing procedure.<\/p>\n
He said many of the investors who wanted to develop
\nplantations had received investment approval from BKPM and
\nlocation permits from the provincial administration, but were
\nnot able to develop plantations because they could not obtain
\nforest relinquishment permits from the Ministry of Forestry and
\nPlantations.<\/p>\n
It currently takes two days for investors to get investment
\napproval from BKPM and one year for investors to get a location
\npermit from the provincial administration. However, they must
\nwait at least two years to get the forest relinquishment permits,
\nAndung said.<\/p>\n
Andung said the government needed to revoke the ruling which
\nobliged potential plantation investors to obtain forest
\nrelinquishment permits.<\/p>\n
He said the Cabinet meeting on investment scheduled for July
\nwould decide whether BKPM would become the sole agency in charge
\nof issuing business permits in the plantation industry.<\/p>\n
\"If the government decides not to give its approval to BKPM,
\ninvestors should be allowed to work on their projects on the
\nbasis of location permits issued by the provincial
\nadministration. Or, at the least, the forest relinquishment
\npermits could be issued by the ministry's provincial offices,\" he
\nsaid.<\/p>\n
Sources said the proposal for one-stop service in issuing
\nbusiness permits in the plantation industry had received
\nopposition from other related government offices, which often
\nabuse the licensing process to charge investors illegal fees.<\/p>\n
Investors who want to develop plantations often have to bribe
\nofficials to ensure they obtain their licenses in a timely
\nmatter, the sources said.<\/p>\n
Aside from difficult licensing procedures, rampant looting and
\ntheft at plantations also discouraged investors from investing in
\nthe country's plantation industry, Andung said.<\/p>\n
\"It's a pity because Indonesia is the best place to develop
\noil palm plantations since the Malaysian oil palm sector is
\nalready crowded,\" he said, adding that the government should take
\nstrict action to deter looters.<\/p>\n
Director General of Plantations Agus Pakpahan said earlier
\nthis month that rampant looting of plantations in 1998 caused an
\nestimated loss of Rp 2.6 trillion.(gis)<\/p>",
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