Decree centralizing investment seen as setback<\/p>\n
Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
The recent presidential decree which centralizes the issuance of
\npermits for investment under the Investment Coordinating Board
\n(BKPM) reflects not only a lack of creativity on the part of the
\ngovernment in streamlining the bureaucracy, but is also
\ndetrimental to the spirit of the long-sought regional autonomy.<\/p>\n
While a clear-cut policy is badly needed to improve the
\ninvestment climate, scrapping the power of the regions in that
\narea is the wrong formula, according to the head of the Regency
\nAdministrations' Association (Apkasi) Syaukani HR and senior
\nlegislator Rizal Djalil.<\/p>\n
\"The government should instead set up a better formula for
\ncoordination between the regions and the investment agency, so
\ninvestor' confusion over the long and often contradicting
\nprocedures, can be reduced.<\/p>\n
\"That's the essence of decentralization, synchronizing things
\nbetween the central and regional governments. The decree only
\nreflects the government's frustration in trying to seek a
\nsolution to this dilemma,\" Rizal Djalil of the House of
\nRepresentatives said on Friday.<\/p>\n
President Megawati Soekarnoputri issued a decree early this
\nweek centralizing permits and other investment service facilities
\nunder the BKPM, setting up what it called an investment service
\n\"under one roof\".<\/p>\n
It abolishes the power of regional administrations --
\ngovernors, regents and mayors -- granted by previous rulings, to
\ndetermine their own policies on investment in their respective
\nregions.<\/p>\n
The regulations that had granted such powers: Law No. 22\/1999
\non regional government, and Government Regulation No. 25\/2000 on
\nthe authority of the central government and regions -- all led to
\nthe enactment of the Regional Autonomy Law in 2001, giving more
\nauthority to regions to draw up and implement their own policies.<\/p>\n
The new decree aims to boost flagging investment in the
\ncountry, particularly foreign investment, due largely to the
\nadverse climate here with concerns over security and political
\nuncertainty, bureaucratic red tape and confusion over
\ndecentralization.<\/p>\n
\"In a bid to attract investors more effectively, it is deemed
\nnecessary to streamline the investment service system through a
\none-roof investment service facility,\" the decree said.<\/p>\n
However, Syaukani, who is also the regent of Kutai Kartanegara
\nin East Kalimantan, attacked the decree as the latest sign of the
\ngovernment's arrogance toward the regions.<\/p>\n
\"It's a huge setback. The government is no different to what
\nwe had in the New Order era, where everything was centralized.
\nWhat's the point of having a decentralization program if these
\nthings continue to happen,\" he asked.<\/p>\n
Moreover, Syaukani questioned the validity of the decree, as
\nit contradicts earlier regulations on regional autonomy and
\nregional government laws that are actually a higher instrument in
\nthe legal hierarchy of regulations than a presidential decree.<\/p>",
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