Major provinces guarantee existing foreign investments<\/p>\n
JAKARTA (JP): In an effort to woo foreign investors, officials
\nfrom the Regional Investment Coordinating Board (BKPMD) of seven
\nmajor provinces, including Jakarta, gave their guarantee on
\nTuesday to maintain and protect all existing foreign investments
\nin their respective areas.<\/p>\n
Deputy chairman of BKPMD for investment services and
\nfacilitation, Yus'an, said the guarantee was made during a
\nmeeting of senior BKPMD officials from Jakarta, East, West and
\nCentral Java, Yogyakarta, Bali and Lampung at Jakarta's City
\nHall.<\/p>\n
According to Yus'an, such a commitment from the local
\nauthorities was urgently needed as many existing foreign
\ninvestors had started to worry, about the future of their
\ninvestments in Indonesia, ahead of next year's implementation of
\nregional autonomy.<\/p>\n
\"That is why we want to assure all foreign investors that we
\nwill secure the existing projects and have standard regulations
\nto avoid uncertainties in the permits issued for foreign
\ninvestment,\" Yus'an told a media conference.<\/p>\n
\"What have been decided by the government on existing foreign
\ninvestments will continue. The regional autonomy will not affect
\nthe projects at all,\" he remarked.<\/p>\n
According to Yus'an, a significant change with regional
\nautonomy, however, would be that foreign investors would need to
\nobtain permits issued by regency administrations where the
\nprojects are located.<\/p>\n
The provincial authorities, he said, would only have the right
\nto supervise the process. In order to avoid different policies
\n(from related government agencies), we would coordinate with the
\nrelated parties to formulate standard guidelines which will not
\nburden the investors,\" Yus'an said.<\/p>\n
For that purpose, he added, the government would set up \"one-
\nroof\" services in each regency to settle problems or disputes
\nrelated to the investments,\" he added.<\/p>\n
Yus'an, whose office is currently under the Ministry of
\nIndustry and Trade, further said the government realized that
\ndirect investments was the most important factor for economic
\nrecovery.<\/p>\n
\"We seriously want to convince all foreign investors that the
\ncountry is ready and the implementation of regional autonomy will
\nnot cause significant differences,\" he said.<\/p>\n
Yus'an also said standard procedures for investment in all 360
\nregencies in Indonesia were being discussed by the Ministry of
\nHome Affairs and his office.<\/p>\n
\"The standard procedures will be issued in December at the
\nlatest, so there will be similar interpretations of the
\nregulations in each regency on foreign investment,\" he added.<\/p>\n
\"With standard procedures, we hope to have fair competition
\namong the regencies in attracting foreign investments.\"<\/p>\n
Meanwhile, Jakarta's BKPMD chairman Albert Napitupulu said the
\ncapital recorded a significant growth in investment this year as
\ncompared to last year.<\/p>\n
\"So far this year, we have 360 contracts for projects from
\nforeign investors worth US$676,773,480 and 44 from domestic
\ncompanies worth Rp 1,323,753,530,000. However only some 30
\npercent of this have been realized thus far,\" Albert said.<\/p>\n
Last year, the capital had 298 contracts for projects worth
\nUS$524,945,860 from foreign companies and 21 from domestic
\ncompanies worth Rp 728,936,550,000. Most of them were in the
\ntrading and service sectors.<\/p>\n
\"These investors are given three years to fulfill their
\ncontractual obligations before their permits are canceled,\"
\nAlbert added. (dja)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/major-provinces-guarantee-existing-foreign-investments-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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