Irian governor urges lower lending rates<\/p>\n
JAKARTA (JP): Irian Jaya Governor Jakob Patipi suggested
\nyesterday that the government take measures encouraging banks to
\nlower interest rates on loans used to invest in the province.<\/p>\n
If the government wants to help Indonesia's less-developed
\nregions, including Irian Jaya, it should have the political will
\nto reduce interest rates on funds destined for investment in
\nthose provinces, Patipi told the press during a break in a
\nseminar on investment in Irian Jaya.<\/p>\n
The seminar, held at Hotel Indonesia, presented State Minister
\nof Investment Sanyoto Sastrowardoyo and Minister of Tourism, Post
\nand Telecommunication Joop Ave as speakers.<\/p>\n
Patipi said his administration has provided some incentives
\nfor investors, such as tax breaks for stone and sand excavation
\nprojects for road-building and other construction in the
\nprovince.<\/p>\n
Sanyoto noted in his speech that the government offers some
\nincentives to investors in the fishery and mining industries. The
\nincentives include a reduction of up to 50 percent on property
\ntax and tax exemptions of up to 10 years for loss compensation.<\/p>\n
Irian Jaya, with a total area of 414,000 square kilometers, is
\nrich in fishery and mineral resources, he said.<\/p>\n
"For example, the province has an annual capacity of one
\nmillion tons of fish," he added.<\/p>\n
Sanyoto said the government is considering subsidies for
\ntransportation in Irian Jaya.<\/p>\n
He acknowledged that transportation difficulties within the
\nprovince, as well as to and from the province, have been a major
\nproblem for investors.<\/p>\n
One investor, who claimed to have invested some Rp 900 million
\n(almost US$395,000) in the aquarium fish business in the
\nprovince, wrote a letter to The Jakarta Post last month,
\ncomplaining about the termination of the government-sponsored
\nflights connecting Jakarta and Biak in Irian Jaya with Los
\nAngeles in the United States.<\/p>\n
He said he had made a large investment in the business with a
\nview to exporting to the United States.(kod)<\/p>",
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