Luthfi takes up BKPM post with new mission<\/p>\n
Zakki P. Hakim, The Jakarta Post, Jakarta<\/p>\n
The government officially installed Muhammad Luthfi as the new
\nhead of the Investment Coordinating Board (BKPM) on Monday.<\/p>\n
The most pressing him will include finalizing the investment
\nbill, slashing the time needed to start up businesses and
\nensuring better coordination with the relevant ministries.<\/p>\n
"We expect the new BKPM head to immediately finalize the
\ninvestment bill under the coordination of the trade minister, as
\ndomestic and foreign investors have long been waiting for the new
\nlegislation," Coordinating Minister for the Economy Aburizal
\nBakrie said during the installation ceremony.<\/p>\n
Aburizal said the bill should accommodate the views of the
\nprivate sector, the relevant central and local institutions and
\nthe national interest.<\/p>\n
The BKPM should also assist investors in overcoming the
\nvarious obstacles they face in setting up businesses.<\/p>\n
"There is no point in having numerous new investment approvals
\nif none of them materialize," he said.<\/p>\n
Aburizal set Luthfi a target of cutting the time needed to
\nstart up a businesses from 156 days to only 30 days.<\/p>\n
Luthfi, a former aide of President Susilo Bambang Yudhoyono
\nduring last year's presidential election campaign, was named as
\nBKPM head two weeks ago, replacing Theo F. Toemion.<\/p>\n
Theo is under police investigation after he allegedly struck a
\n14-year-old student referee and quarreled briefly with foreign
\nresidents at the Jakarta International School (JIS)
\nduring a basketball competition in which Theo's seven-year-old
\nson was playing on April 17.<\/p>\n
He did not attend the ceremony, although according to his
\nformer staff members, he was at his office during the event.<\/p>\n
Luthfi, a former chairman of the Indonesian Entrepreneurs
\nAssociation (HIPMI), said he would turn the BKPM into an agency
\nthat would devote itself to promoting the creation of value-added
\nactivities.<\/p>\n
"We will invite investment on a door-to-door basis in
\naccordance with the blueprint on the manufacturing sector
\nproduced by the Ministry of Industry. That way, we will ensure a
\nmore focused effort on facilitating value-added activities in the
\ncountry," he said.<\/p>\n
The government plans to strip away some of the BKPM's powers
\nto issue investment approvals in a bid to attract more foreign
\ninvestment.<\/p>\n
The move is expected to reduce the length of time needed for
\nforeign businesses to start operations here. Until now, the BKPM
\nhas been authorized to process all investment permits and certain
\nother licenses related to business activities.<\/p>\n
The government has also reduced the status of the BKPM and put
\nit under the coordination of the Ministry of Trade. However, it
\nwill continue to directly report to the President.<\/p>\n
Trade minister Mari E. Pangestu said the government was
\npushing for the investment bill to be deliberated this year as it
\nhad yet to be listed on the schedule of bills to be debated by
\nthe House.<\/p>\n
"Considering that improving the investment climate is one of
\nthe Cabinet's priorities, we are seeking ways to put the bill
\non the legislators' schedule for deliberation this year," she
\nsaid.<\/p>\n
Mari said that in general "the bill is founded on the
\nprinciple of equality of treatment subject to negative lists,"
\nand adopted best practice from other countries.<\/p>\n
It also provided guarantees against nationalization and
\nexpropriation, but even if such things took place there would
\nhave to be a compensation, she said. The bill also guaranteed the
\nfreedom to repatriate profits, and broadened the definition of
\ninvestment, she added.<\/p>",
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