Kadin says red tape hindering investment<\/p>\n
JAKARTA (JP): The Indonesian Chamber of Commerce and Industry
\nvoiced concern yesterday because many investment commitments were
\nnot being realized and non-oil export growth was slowing.<\/p>\n
The chamber's chairman, Aburizal Bakrie, said yesterday the
\nlow realization of investment commitments was caused mainly by
\nred tape, legal and illegal levies and inconsistent policy.<\/p>\n
\"Businesspeople are more concerned with policy inconsistency,
\ndistortion, arduous licensing and levies rather than the issue of
\npresidential succession.<\/p>\n
\"Let's hope that there will be serious efforts (by the
\ngovernment) to create a conducive climate for investment,\"
\nAburizal said.<\/p>\n
The Investment Coordinating Board revealed recently that 46.4
\npercent of licensed domestic investment projects and 48.1 percent
\nof licensed foreign investment projects were being realized.<\/p>\n
Aburizal said these below-50-percent rates were \"saddening\".<\/p>\n
He said the investment realization rate would be higher if the
\ngovernment and the private sector joined forces to address
\nproblems.<\/p>\n
\"Slow licensing, for instance, especially for large projects
\nand infrastructure projects, will eventually affect real
\ninvestment,\" Aburizal said.<\/p>\n
He said a higher investment-realization rate would help
\nimprove the country's non-oil export performance and maintain its
\nhigh economic growth.<\/p>\n
Aburizal said he was worried about the slowing growth of non-
\noil exports while import growth soared.<\/p>\n
The value of non-oil exports rose from US$27.1 billion in 1993
\nto $30.4 billion in 1994 and $34.9 billion in 1995. Non-oil
\nimports rose from $26.2 billion in 1993 to $29.6 billion in 1994
\nand $37.7 billion in 1995.<\/p>\n
Aburizal said the lack of a comprehensive industrial policy
\nand the high-cost economy had been partly responsible for the
\nnon-oil export slowdown.<\/p>\n
He suggested the government nurture new products which could
\ncompete in the global market in the long run, while maintaining
\nspecial treatment for products with high export value like
\ntextiles and plywood.<\/p>\n
\"We need to look into products which can compete in the next
\n10 years rather than sticking to products which are losing ground
\nlike textiles,\" Aburizal said.<\/p>\n
Fadel Muhammad, an executive at the chamber, said the chamber
\nhad identified at least nine product categories which were
\nexpected to remain competitive in the next decade.<\/p>\n
They are pulp and paper, edible oil (crude palm oil),
\nprocessed edible oil, rubber products, metals, electronics,
\ntelecommunications products and furniture.<\/p>\n
Fadel said exports in these categories had grown more than 15
\npercent in the last five years.<\/p>\n
He suggested the government pay more attention to companies
\nproducing these products by providing free training, assistance
\nfor research and development and, if possible, fiscal incentives.
\n(rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/kadin-says-red-tape-hindering-investment-1447893297",
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