Provinces asked to honor contracts signed by Jakarta<\/p>\n
JAKARTA (JP): President Abdurrahman Wahid urged provincial and
\ndistrict administrations on Monday to honor business contracts
\nconcluded by the central government and to act as good hosts to
\nbusinesses.<\/p>\n
Abdurrahman told a meeting with provincial governors, who are
\nholding a two-day conference, that efforts to promote foreign
\ninvestment by the central government would be futile if local
\nadministrations did not help maintain a conducive business
\nclimate.<\/p>\n
\"We have to abide by our international commitments and local
\nadministrations cannot change business contracts without approval
\nfrom the central government,\" the President said.<\/p>\n
He cited a recent decision by the central government which
\nruled that autonomy rests with provincial administrations, not
\ndistrict administrations.<\/p>\n
\"Provincial administrations will act as the extended executive
\narm of the central government in the region,\" he said.<\/p>\n
It was initially expected that the new law on regional
\nadministration, which will become effective in January, will vest
\ndistrict administrations with autonomy.<\/p>\n
But given the lack of bureaucratic capability at most district
\nadministrations, the Cabinet recently decided to vest provincial
\nadministrations with autonomy for the next two years at least.<\/p>\n
District administrations, he said, had no right at all to
\nchange business contracts sanctioned by the central government,
\nand any changes intended for existing business contracts should
\nbe proposed to the central government.<\/p>\n
He said the numerous claims, either reasonable or insensible,
\nwere made to provincial administrations either by district
\nadministrations or locals.<\/p>\n
The President said provincial administrations should be able
\nto act as an effective bridge or conduit of the interests of
\ndistrict administrations to the central government.<\/p>\n
Abdurrahman reiterated the crucial importance of foreign
\ninvestment for helping accelerate Indonesia's economic recovery.<\/p>\n
\"Therefore, promotion of foreign investment was made one of
\nthe top priority programs of my administration,\" he said.<\/p>\n
The problem, though, is that investors will not come to
\nIndonesia if security and political stability, most notably in
\nprovinces, is not maintained.<\/p>\n
In fact, he added, most foreign investors have decided to wait
\nfor the outcome of the upcoming annual session of the People's
\nConsultative Assembly (MPR) before making decisions to do
\nbusiness in the country.<\/p>\n
\"They want to see whether I'll be toppled or not from
\ngovernment,\" he said, referring to the MPR session in August when
\nthe President will account for his administration's performance
\nsince October.<\/p>\n
He added, however, that the government and people should not
\nwait for foreign investors to come to the country.<\/p>\n
\"We should do something to maintain our economic recovery.
\nHence, an export drive should be made to fuel economic
\nactivities, creating jobs,\" the President said.<\/p>\n
But he again warned that export promotion would become a
\nfutile exercise if \"we don't honor our international
\ncommitments\".(prb\/vin)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/provinces-asked-to-honor-contracts-signed-by-jakarta-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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