Government to review ban on foreign dot-com investors<\/p>\n
JAKARTA (JP): The government will review the controversial
\nruling banning the entry of foreign investors into the Internet
\nsector.<\/p>\n
Riza Primadi, the senior assistant on communications and media
\nto the state minister of investment and state enterprises
\ndevelopment, said here on Wednesday his office planned to hold an
\ninterministerial meeting on Monday next week to review the
\nruling.<\/p>\n
\"We can't say anything yet ... by Tuesday at the earliest
\nwe'll announce the outcome,\" Riza said during a media conference.<\/p>\n
The upcoming meeting, he said, would include senior officials
\nfrom the Ministry of Industry and Trade, the Ministry of
\nTransportation and several other related government institutions.<\/p>\n
The meeting will be held in response to demands from the
\ncountry's nascent Internet industry to reconsider the ban, he
\nsaid.<\/p>\n
Riza said that last Friday chief executive officers from
\nseveral Internet companies submitted their objections to the new
\ninvestment policy.<\/p>\n
\"I received their input and forwarded them on Saturday to the
\nminister, who said the input was good,\" Riza explained, adding
\nthat he also received numerous e-mails on the subject.<\/p>\n
He also said his office would meet with dot-com investors to
\nhear their complaints. According to him, the minister agreed to
\nhold this meeting after the Annual Session of the People's
\nConsultative Assembly, which ends on Aug. 18.<\/p>\n
\"We will just talk and see what we can do for them,\" he said.<\/p>\n
The restrictions imposed on foreign investment in multimedia
\ninformation services are contained in the negative investment
\nlist issued by the government last week.<\/p>\n
Several other business sectors such the print industry, radio
\nand television broadcasting, cable television and public
\ntransportation are also on the list.<\/p>\n
The Forum of the Indonesian Internet Industry (FIII) has
\npredicted the demise of the country's Internet sector as a result
\nof this new ban.<\/p>\n
FIII, which groups 36 local Internet-based firms, suggested
\nthe government revise the decree and declare the Internet sector
\nopen to foreign investment.<\/p>\n
Minister of Trade and Industry Luhut Pandjaitan also lambasted
\nthe policy, saying the ban should not have been issued.<\/p>\n
Most locally based Internet companies such as Detik, Catcha
\nand Astaga are jointly owned by local and foreign firms.<\/p>\n
Internet investors view Indonesia as having great potential
\nbecause of its population of some 210 million and estimates that
\nthere will be five million Internet users in the country by 2002.<\/p>\n
However, Riza said the investment ban on the Internet sector
\nhad won the approval of the International Monetary Fund.<\/p>\n
The minister's deputy for investment policies and planning,
\nHidayatullah Suralaga, said the government understood the
\ncomplaints of Internet investors.<\/p>\n
\"The government is always responsive to business needs,\"
\nHidayatullah said.<\/p>\n
He said if investment in the Internet sector suffered a sharp
\ndrop, the government would certainly react.<\/p>\n
\"Basically, we can always review the negative investment list,
\nat least once a year,\" Hidayatullah said, adding that if
\nnecessary the ban could be revoked.<\/p>\n
Meanwhile, in response to criticism from the Assembly on
\ndeclining investment in the country, the Ministry of Trade and
\nIndustry claimed investment approvals increased during the 10
\nmonths President Abdurrahman Wahid has been in power.<\/p>\n
The ministry said approved foreign investment projects from
\nOct. 1999 to June 2000 rose 24.8 percent to 961 projects, from
\n770 projects during the same period the previous year.<\/p>\n
The value of approved foreign investments during this same
\nperiod rose 39.8 percent to US$3.7 billion from $2.6 billion last
\nyear.<\/p>\n
It said that during Abdurrahman's presidency, approved
\ndomestic investment projects rose 34.8 percent to 221 projects
\nfrom 164 projects the previous year.<\/p>\n
However, the value of approved domestic investments dropped
\n4.8 percent to Rp 21.6 trillion ($2.5 billion) from Rp 22.6
\ntrillion in 1999. (bkm)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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