Overlapping levies upset developers<\/p>\n
JAKARTA (JP): Industrial estate developers complained on
\nTuesday of overlapping levies by local administrations and other
\nparties, saying the charges would discourage investors.<\/p>\n
Chairman of the Indonesian Industrial Park Association Halim
\nShahab, said high costs resulting from the levies on industrial
\nparks had made industrial parks less competitive than facilities
\nin other countries, especially those in Malaysia.<\/p>\n
\"Investors operating in industrial parks should instead be
\nprovided with incentives to minimize the costs of their
\ninvestment,\" he said at a seminar on the role of industrial parks
\nin generating foreign exchange.<\/p>\n
Halim's complaints were echoed by Gunawan Hadisusilo, the
\nministry of home affairs' inspector general for the development
\nof industrial parks, integrated economic development zones and
\nspecial projects.<\/p>\n
Gunawan acknowledged that many regulations imposed by local
\nadministrations contradicted a government bid to encourage local
\nand foreign investors to develop their businesses.<\/p>\n
Local administrations imposed local levies on investors
\noperating in industrial parks in order to collect more revenue,
\nhe said.<\/p>\n
He cited investors in Jatiluhur Dam industrial park having to
\npay water fees both to local administrations and to the operator
\nof the dam, the state-run Jatiluhur Authority.<\/p>\n
\"(The charges) contradict the government's spirit to offer
\nincentives such as tax reductions which minimize investors'
\noperational costs.\"<\/p>\n
Occupants of industrial parks have also been forced to pay
\nsecurity fees and other levies to village heads or other
\nauthorities at the subdistrict level, he said.<\/p>\n
Halim said the economic and political turmoil had brought the
\nindustrial parks to the verge of bankruptcy.<\/p>\n
Over ninety percent of parks had been unable to attract
\noccupants since the crisis began, he said.<\/p>\n
\"Some industrial parks in Medan, North Sumatra and Sulawesi
\nare still able to attract new occupants whose operations related
\nto agribusiness, but the number is too small,\" he said.<\/p>\n
Halim said currently 172 developers had obtained approval to
\ndevelop 52,882 hectares, but so far only 46 of the parks were
\nconducting operations.<\/p>\n
Gunawan said the reduction in flight routes by domestic
\nairlines had posed another blow to industrial parks, especially
\nthose located in eastern provinces, discouraging investors from
\nopening businesses. (gis)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/overlapping-levies-upset-developers-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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