Fifty economic bills await new government<\/p>\n
Zakki P. Hakim and Rendi A. Witular, The Jakarta Post\/Jakarta<\/p>\n
The next government will face the challenging task of completing
\ndeliberations of about 50 draft laws and regulations on the
\neconomy, or existing investors would flee the country, the top
\neconomics minister said on Wednesday.<\/p>\n
Speaking at an investment forum attended by members of the
\nIndonesian Chamber of Commerce and Industry (Kadin) and foreign
\ntrade associations, Coordinating Minister for the Economy
\nDorodjatun Kuntjoro-Jakti said the proposed laws and regulations
\nwere crucial in improving the country's investment climate.<\/p>\n
Dorodjatun, however, acknowledged that the current government
\ncould not finish deliberations before their term ended, and said
\nthe bottleneck was caused by the House of Representatives.<\/p>\n
\"I do not want to blame the House, but the fact is, only four
\nor five drafts are deliberated during each session,\" he told
\nreporters after the meeting.<\/p>\n
Among the unfinished drafts are a presidential decree on labor
\nwage council, regulations on upstream and downstream oil and gas
\nbusinesses, a trade bill and bills on information and electronic
\ntransactions, investment and taxation.<\/p>\n
The country must boost investment to accelerate economic
\ngrowth and resolve the chronic unemployment, but for the past few
\nyears, investment has been weak due to the poor investment
\nclimate.<\/p>\n
Foreign direct investment approvals fell 33.62 percent in the
\nfirst seven months this year to US$3.30 billion from $4.97
\nbillion on-year, the Investment Coordinating Board said on
\nMonday. During the same period, domestic investment approvals
\nrose 34 percent year-on-year to Rp 18.72 trillion ($2.02
\nbillion), it said.<\/p>\n
Meanwhile, British Chamber of Commerce chairman John B. Arnold
\nsaid instead of focusing on creating new laws and regulations, an
\nimmediate solution would be to ease red tape.<\/p>\n
\"I admit that the country might be short of laws, but in some
\nareas, we are overregulated. (The government) must get the
\nbalance right. Deregulation is a must,\" he said.<\/p>\n
He also criticized the government's poor investment policy as
\nlacking in specific details and targets.<\/p>\n
For example, he said, businesses had long heard about planned
\ntax incentive, but since no details were provided, no new
\ninvestments were coming in.<\/p>\n
\"The government said 2003 was the year of investment, and
\nthen, 2004 is also the year of investment, but the government has
\ndone nothing significant to improve the investment climate up
\nuntil today,\" said Arnold.<\/p>\n
American Chamber of Commerce (AmCham) president Joe Bartlett
\nsaid in a written statement made available to the Post that
\nAmCham recommended that the government work with existing
\ninvestors to restore confidence and to assist them in becoming
\nthe country's best advocates for attracting new investors.<\/p>\n
Amcham also suggested that the government attract new private
\ninvestment capital by eliminating business risks and uncertainty
\nthat eroded Indonesia's competitiveness.<\/p>\n
Furthermore, the government should eliminate surprises and
\ninconsistencies, control corruption, enforce the rule of law and
\nimprove coordination among government departments, as well as
\nbetween the central, provincial and regional governments.<\/p>\n
Amcham suggested specifically that the next government set up
\nan intellectual property rights agency chaired by the top
\neconomics minister, which also involved the National Police, the
\nAttorney General's Office and customs department.<\/p>",
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