Border crossing investment

Border crossing investment

JAKARTA (JP): A former minister suggested Saturday that
Indonesia open its border areas to investors from adjacent
countries in order to prepare itself for regional trade
liberalization by the year 2003.

Emil Salim, former state minister for population and
environment, urged the government to allow companies from
adjacent countries to set up investment projects in border areas
without having to get licenses from the Investment Coordinating
Board under the spirit of the ASEAN Free Trade Agreement.

Under the agreement, the member countries of the Association
of Southeast Asian Nations (ASEAN) are committed to liberalizing
trade among themselves by the year 2003.

Citing an example, Emil said that the government should open
North Sumatra and Aceh for investors from Thailand, Malaysia and
Singapore.

The government should also open North Sulawesi for investors
from the Philippines and East Nusa Tenggara for North Australian
investors, he said.

Speaking about collateral-free loans which will be introduced
by banks for small businesses, Emil said that such loans are
expected to help solve property problems in the country.

The government announced recently that small businesses will
be allowed to raise loans of up to Rp 50 million (US$ 22,200)
without collateral. Such loans will be provided by state banks,
which will be followed by private banks.

However, he urged the government to tighten the supervision of
the loan program to prevent corruption and collusion. (05)