Japan unimpressed with RI over FTZ inaction<\/p>\n
Fadli, The Jakarta Post, Batam\/Jakarta<\/p>\n
The Japan External Trade Organization (Jetro), an influential
\nJapanese government agency, said it was pessimistic over
\nIndonesia's stated plan to implement the Free Trade Zone (FTZ) in
\nBatam.<\/p>\n
The pessimism was expressed by Jetro's senior investment
\nadvisor Saburo Izumi on Thursday during a visit to the industrial
\nisland to promote investment inflows into the country.<\/p>\n
Based on the agency's talks with a number of sources in
\nJakarta, Saburo said that Jetro was upset that the FTZ
\nimplementation did not look likely in the near future.<\/p>\n
While highlighting the importance of the FTZ status in luring
\nmore investment to the island, the uncertainty in the process has
\nbegun creating a lot doubt on the part of investors, especially
\nJapanese, he added.<\/p>\n
Despite that the Indonesian government's expressed commitment
\nto the plan, the progress in the drafting of a law which will
\ngrant the island the FTZ status has been too slow.<\/p>\n
The National Economic Recovery Committee (KPEN) has repeatedly
\ncriticized the slow progress in the drafting, saying that the
\nmuch-anticipated law was very important to strengthen legal
\ncertainty for investors interested in Batam.<\/p>\n
An FTZ status would enable companies on Batam to import goods
\nwithout paying customs duties and taxes, pending their eventual
\nprocessing, transshipment or export.<\/p>\n
The island is home to hundreds of export-oriented
\nmanufacturers, mostly international companies.<\/p>\n
The industrial island was declared a bonded zone area in 1978.
\nBut after decades of operation, Batam is now more like an FTZ as
\nlocal authorities give greater tax incentives to investors in a
\nbid to boost investment activities.<\/p>\n
But existing investors are still worried that the government
\nmight suddenly change the current FTZ-like benefits. In a bid to
\nattract more investment, a law has been drafted to make the FTZ
\nstatus legal and permanent.<\/p>\n
Elsewhere, Saburo said that, of the total 1,100 Japanese
\ncompanies operating in Indonesia, 52 of which are in Batam with a
\ntotal investment value of US$429 million.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/japan-unimpressed-with-ri-over-ftz-inaction-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}