Investment board proposes bill<\/p>\n
JAKARTA (JP): The Investment Coordinating Board will propose a
\nbill on both domestic and foreign investment operations to
\nreplace Law No.1\/1967 and Law No.8\/1968.<\/p>\n
The board secretary Asriel Noer said the bill was made to
\naccommodate the process of economic globalization.<\/p>\n
Foreign investment is currently governed by Law No.1\/1967 and
\ndomestic investment by Law.8\/1968.<\/p>\n
He said the board followed the examples of many other
\ncountries in integrating the regulations on domestic and foreign
\ninvestment activities into a single law.<\/p>\n
The bill regulates eight aspects of investment, including the
\nscope of investment, investment period, share ownership and
\ntransfer, equal treatment to both domestic and foreign investors,
\nlicensing procedures, investment by domestic businessmen in
\nforeign countries, preferential treatment in favor of domestic
\ninvestors.<\/p>\n
On the scope of investment, Asriel said, the bill did not
\ncover investment in banking, oil and gas, which had been
\nregulated in special rulings.<\/p>\n
Regarding share ownership and transfer, the bill accommodates
\nthe government regulation No. 20 of 1994 on share ownership in
\nforeign investment companies.<\/p>\n
\"This government regulation ( which allows wholly foreign
\nowned companies) has a weak legal basis. By being incorporated
\ninto the bill, the regulation will have a stronger legal basis,\"
\nAsriel was quoted by Antara as saying.<\/p>\n
He said the bill emphasized an equal treatment to domestic and
\nforeign investment as the international trends had increasingly
\nrequired.<\/p>\n
\"These trends did not exist when we made the law on foreign
\ninvestment in 1967,\" he said.<\/p>\n
The bill regulates investment by local businessmen in foreign
\ncountries to correct the prevailing perception that such an
\ninvestment is a capital flight.<\/p>\n
\"It is a misleading perception. Such an investment is
\nnecessary as a business strategy in the globalization era,\" he
\nsaid.<\/p>\n
Local businessmen have sometimes to invest overseas in order
\nto maintain its competitiveness against foreign businessmen, he
\nsaid.<\/p>\n
Asriel said the draft bill had yet be approved by other
\nrelated government agencies before the board could propose it to
\nthe House of Representatives.<\/p>\n
He called on the agencies to prioritize discussing the bill
\ndue to its importance. (jsk)<\/p>",
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