Foreign investment in Indonesia<\/p>\n
Minister of Trade Mari E. Pangestu's comments and concerns
\nwith regard to "out of control regional administrations' levies
\non foreign investors" (The Jakarta Post of Feb. 14) are to be
\ncommended.<\/p>\n
We will, however, wait and see if these words are finally
\ngoing to turn into concrete action. Foreign investors have been
\npatiently waiting six years for Indonesia to change legislation
\nto attract or keep foreign investors. History, so far, has only
\nseen lip service paid to this very serious economic obstacle by
\nprevious administrations.<\/p>\n
How are regional authorities going to take seriously any
\nrequirement by the central government to stop levies when the
\nIndonesian government independently levies foreign investors from
\nevery direction? When a foreign investor has to pay between 40
\nand 70 million rupiah just to register a business in Indonesia
\nthen something is fundamentally wrong. Our closest neighbors like
\nVietnam offer free company registration and working visas for
\nforeign investors.<\/p>\n
A yearly fee of Rp 4 million per person for a temporary stay
\npermit (KITAS) and the contentious work permit for expatriates
\n(Ikta) fee of US$1,200 per year are not indicators of a foreign
\ninvestment friendly government.<\/p>\n
On top of all this, now the foreign investor must pay into
\nJamsostek for his personal medical insurance and pension. Last
\nbut not least, the much debated fiscal tax to depart from
\nIndonesia.<\/p>\n
So, before the central government looks at cleaning up
\nregional administration levies it would be prudent to lead by
\nexample by repealing regulations presently strangling foreign
\ninvestors. The Indonesian government needs to take into account
\nthe foreigner business culture when spending huge amounts of
\nmoney trying to attract foreign direct investment.<\/p>\n
The only way foreign investment will flow into Indonesia is
\nwhen established foreign investors relay positive sentiments
\nabout the present business environment through the business
\ngrapevine used by potential foreign investors before making
\ndecisions on investing their hard earned capital in the country.<\/p>\n
A level playing field is all that is required to reinvigorate
\nstalled foreign investment and retain those investors who have in
\nthe past supported Indonesia's economy and created much needed
\nemployment.
\n
\nMARGARETTE HASKELL
\nBali<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/foreign-investment-in-indonesia-1447899208",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}