Govt lists actions to up investment<\/p>\n
Reiner Simanjuntak, The Jakarta Post, Tokyo<\/p>\n
President Susilo Bambang Yudhoyono and Japanese Prime Minister
\nJunichiro Koizumi have announced a joint action plan aimed at
\nimproving the investment climate in Indonesia and doubling the
\nvolume of foreign investment in the country, particularly from
\nJapan, during the next five years.<\/p>\n
Called the Japan-Indonesia strategic investment action plan
\n(SIAP), it consists of a list of concrete actions to fix problems
\nfaced by investors in four areas, namely tax\/customs, labor,
\ninfrastructure and industrial competitiveness\/small and medium-
\nsized enterprises.<\/p>\n
\"The two leaders ... stressed the importance and urgency for
\nIndonesia to take actions especially in these four areas,\" they
\nsaid in a joint statement issued on Thursday following a summit
\nat Koizumi's residence.<\/p>\n
The statement said that although a majority of the actions in
\nthe SIAP would be implemented by the Indonesian government, the
\nJapanese side could facilitate those actions.<\/p>\n
The SIAP was jointly prepared by a forum of public and private
\nsectors of the two countries following an agreement reached by
\nthe two leaders in November 2004 in Chile.<\/p>\n
Susilo is in a Japan on a four-day working visit that ends on
\nFriday aimed at luring crucial new Japanese investment in the
\ncountry, among other things.<\/p>\n
Japan is one of the largest sources of foreign investment for
\nIndonesia, where currently some 900 Japanese companies operate
\nwith a total investment of around US$11 billion and employing
\n282,000 people. But Japanese companies have failed to make new
\ninvestments over the past several years due to a host of
\nproblems.<\/p>\n
The SIAP can also been seen as part of an action plan aimed at
\naccelerating investment flow from Japan as envisaged under a
\ncomprehensive economic cooperation between the countries called
\nthe Economic Partnership Agreement (EPA).<\/p>\n
The EPA would cover areas such as trade in goods (tariff and
\nnontariff measures, rules of origin, trade remedies), customs
\nprocedures, trade in services, investment, movement of natural
\npersons, government procurement, intellectual property rights,
\ncompetition policy, and dispute avoidance and settlement.<\/p>\n
\"The two leaders hereby decided that the governments of the
\ntwo countries should enter into negotiations on the EPA as soon
\nas possible, at the latest by July 2005,\" the statement says.<\/p>\n
Coordinating Minister for the Economy Aburizal Bakrie said
\nearlier that talks could be concluded within a year.<\/p>\n
Earlier in the morning on Thursday, Susilo urged Japanese
\ninvestors to immediately resume investment in Indonesia, saying
\nthat there were plenty of reasons why now, not later, was the
\nright time to invest or expand business in the country.<\/p>\n
\"There is still a wide (range of) opportunities for Japanese
\ncompanies to expand in the traditional areas of Japanese
\ninvestment such as electronics, automotive, textiles and
\nchemicals as well as supporting industries.<\/p>\n
\"But we also want to see Japanese participation in the
\ndevelopment of our agriculture sector and in 'quality investment'
\nwith strong research and development interests,\" he said at a
\nbusiness gathering here.<\/p>\n
Indonesia badly needs foreign investment for massive
\ninfrastructure projects and to create jobs and sustain economic
\ngrowth. But Susilo said he was told that some Japanese investors
\nremained doubtful about investing in Indonesia.<\/p>\n
Susilo said that the investment climate in Indonesia was
\nimproving, with a pro-business government elected directly by the
\npeople and more stable political macroeconomic conditions.<\/p>",
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