Poor services still hamper investments<\/p>\n
JAKARTA (JP): Poor services, inadequacy of regulations and
\nhigh-cost economy are hampering investment, chairman of the
\nJakarta investment coordinating board, Ery Chayaridipura says.<\/p>\n
Ery said yesterday the three factors had become the main
\nconstraints in the city administration reaching its target in the
\nSixth Five-Year Development Plan (Repelita VI).<\/p>\n
\"Services must be improved so investors get everything they
\nneed, including information as soon as they want. Whereas proper
\nregulations are needed to guarantee a healthy business climate,\"
\nEry said, adding that illegal levies and bribery, which cause
\nhigh-cost economy, must be eliminated.<\/p>\n
To attract more investors the administration should provide
\nadequate infrastructure such as roads, electricity and
\ntelecommunications. Clear regulations on coordination among
\nrelated offices in charge of investment affairs and establishing
\ninfrastructure are badly needed, he said.<\/p>\n
A one stop service for investors to obtain permits quickly
\nmust also be made available.<\/p>\n
According to Ery, the city administration must deal with these
\nproblems appropriately if it wants to reach its target of gaining
\nRp 127 trillion (US$56.44 billion) in investment commitments in
\nthis Repelita VI, beginning in April last year.<\/p>\n
He said eliminating the obstacles is imperative because most
\nof the target is expected from private investors. \"We expect 6
\npercent of the investment from the government.\"<\/p>\n
Board records show that investment commitments in the first
\nsix months of this year reached $1.28 billion.<\/p>\n
About $350 million worth of commitments is from 63 foreign
\ninvestors, while the remaining $935.81 million (Rp 2.05 trillion)
\nis from 66 domestic investors.<\/p>\n
Ery admitted it would be difficult for the administration to
\nreach the target. He, however, said he was optimistic because he
\nsaw the administration's determination in eradicating the
\nobstacles, and the significant economic growth.<\/p>\n
\"The target was actually set based on the Jakarta economic
\ngrowth of 8.23 percent per year,\" Ery, former head of the city
\ndevelopment planning board, said.<\/p>\n
He said he planned to visit all offices concerning investment
\naffairs periodically to make sure that investors obtain good
\nservices and complete information.<\/p>\n
\"However, an investor must also provide the proper documents
\nas required by regulations.\"<\/p>\n
Speaking of the investment climate, Ery said that there has
\nbeen a transition since the beginning of the Sixth Five-Year
\nDevelopment Plan. \"Investors tend to invest in service, business
\nand tourism sectors.\"<\/p>\n
The transition is influenced by various aspects such as land
\nprices. \"Investments which need large areas and water are not
\ninteresting to investors. Land is too expensive here,\" he
\nsaid.(yns)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/poor-services-still-hamper-investments-1447893297",
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