Both local and foreign investors are seeking clarification from the government on its commitment to providing a more conducive investment climate amid growing demands for the expansion of the business sectors that are closed to foreign investors.

JAKARTA - After heavy government lobbying, Indonesia's central bank (BI) has agreed to roll back lending restrictions imposed on the banking sector in the wake of the 1997-98 Asian financial crisis and promote new bank lending targets for small and medium-sized enterprises (SMEs).

With the enactment of the new Investment Law, the central bank says it expects that Indonesia will be able to attract more foreign direct investment (FDI) -- rather than just portfolio investments -- so as to produce higher and more sustainable growth this year. Bank Indonesia Governor Burhanuddin Abdullah said Friday that with the more pro-business Investment Law, domestic investment should also increase.

JAKARTA (AP): An American gold mining executive said Friday investors were closely watching to see if he would be found guilty of dumping dangerous levels of mercury and arsenic-laced waste into an Indonesian bay, sickening villagers. Richard Ness, president director of Newmont Mining Corp.'s local subsidiary, insists he and the company are innocent. He faces a maximum 10 years in prison and a US$165,000 (euro126,700) fine. A verdict is expected on Tuesday.

TEMPO Interactive, Jakarta: The Central Bureau of Statistics (BPS) said that the unemployment rate in 2006 decreased compared to previous years. The drop in unemployment was seen after the BPS surveyed the national work force in February 2007. “The unemployment rate was down. However, the precise rate cannot be said,” head of the BPS Rusman Heriawan told Tempo yesterday (04/19) in Jakarta. In addition to the work force survey in March 2007, the BPS also surveyed the poverty rate.

TEMPO Interactive, Jakarta: Financial market analyst Reza Wibawa has asked Bank Indonesia (BI) to curb the improvement of the rupiah so that there will not be a sharp sudden increase of rupiah currency. “Should rupiah sharply increase suddenly, it would endanger the domestic industry in the international market. Our poor exporters,” Reza told Tempo today (04/20). Reza said that all world currency is improving significantly today against the US dollar.

TEMPO Interactive, Jakarta: Despite the previous proposal of state co-financing being rejected, PT Adhi Karya is expecting that it can get state co-financing from the government. This is considered as extra capital for the company. “Hence, state co-financing can be used for accelerating the infrastructure project,” said Managing Director of Adhi Karya Syaiful Imam in Jakarta.

TEMPO Interactive, Jakarta: The implementation of sanctions over industry that produce pollution will be more effective than a moratorium of new vehicle manufacturing. Industrial pollution, said former Coordinating Minister for the Economy Rizal Ramli, was one the causes of the green-house effect that affects global warming.