Govt strips BKPM of power, Theo's post is vacated<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Amid talks of replacing Investment Coordinating Board (BKPM) head
\nTheo F. Toemion, the government is aiming to strip away some of
\nthe agency's authority.<\/p>\n
Minister of Trade Mari Elka Pangestu said on Monday the
\ngovernment would strip the authority of BKPM to issue investment
\napprovals so as to reduce time needed for foreign businesses to
\nstart operations here.<\/p>\n
At present, the BKPM is authorized to process all investment
\npermits as well as certain other licenses related to business
\nactivity.<\/p>\n
\"Later on, it will be enough for businesses to go to a local
\npublic notary to get approval and registration,\" said Mari,
\nadding that the notary would then process the necessary
\nrequirements at other ministries.<\/p>\n
The government has also lowered the status of the BKPM and put
\nit under the coordination of the Ministry of Trade. But it still
\ndirectly reports to the President.<\/p>\n
The chairman's post at the agency is expected to become vacant
\nwith Theo planning to resign, just days after reports of his
\nmuch-criticized alleged assault on expatriates at an
\ninternational school during a children's sporting event.<\/p>\n
According to his secretary, Nurul, Theo's resignation letter
\nwould be submitted to President Susilo Bambang Yudhoyono on
\nTuesday, as some corrections and adjustments to the letter still
\nhave to be made.<\/p>\n
Theo allegedly struck a 14-year-old student referee and
\nscuffled briefly with foreign residents at the Jakarta
\nInternational School (JIS) during a basketball competition in
\nwhich Theo's seven-year-old son was playing on April 17.<\/p>\n
Theo, a former legislator with the Indonesian Democratic Party
\nof Struggle (PDI-P), admitted to slapping the referee in the
\nface, trying to grab the shoulder of the woman coordinating the
\ncompetition, and overturning furniture after his son was fouled
\nout of the game.<\/p>\n
Meanwhile, in response to Theo's resignation plan, Mari said
\nthe President would soon pick a replacement, but in the meantime,
\nan ad-interim official from inside the BKPM might fill the
\nboard's top post.<\/p>\n
The government is currently examining three candidates to
\nreplace Theo. According to State Minister of Administrative
\nReform Taufik Effendi, the replacement is unlikely to be
\nappointed in the near future.<\/p>\n
\"We have prepared the candidates, but selection is still at a
\npreliminary stage. Thus, I don't think it will be concluded
\nsoon,\" he said after accompanying Susilo at a ceremony on Monday.<\/p>\n
Coordinating Minister for the Economy Aburizal Bakrie welcomed
\nTheo's plan to resign as BKPM chairman.<\/p>\n
\"It's good if he wants to resign. He thinks it's high time,\"
\nsaid Aburizal at the State Palace on Monday.<\/p>\n
Established in 1973, the BKPM was created with the purpose of
\ncoordinating the realization of foreign and domestic investment
\nin the country.<\/p>\n
However, the board has been a subject of criticism due to the
\ncountry's continued sluggish investment performance, especially
\nfrom offshore.<\/p>\n
Placing the BKPM under the Ministry of Trade was also designed
\nto assist in better coordinating the related ministries.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-strips-bkpm-of-power-theos-post-is-vacated-1447893297",
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"sponsor": "Okusi Associates",
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