Businesspeople groan about bribery again
JAKARTA (JP): Businesspeople are complaining again about problems in getting business licenses, illegal levies and the country's poor market information system.
"BKPM (The Investment Coordinating Board) has already improved its services, but it is still a bit slow in granting investment permits to investors," an informed source said yesterday.
He said that after securing a license from the board, investors had to deal with other government agencies, such as the national land agency, local administrations, the ministry of manpower and the immigration office, which was often time consuming.
These arduous procedures could affect investors' schedules and cost them a lot of money, he said.
"This is not to mention the illegal levies, which could reach up to 10 percent of total production costs, excluding raw materials," said the source, a yarn manufacturing company's finance manager.
He cited illegal levies charged by some officials of the ministry of manpower as an example: "They manipulated the workers' health and safety rulings for their own interests."
Other businessmen shared the manager's view, saying that such problems, particularly the illegal levies, had often been reported to the government "but still there is not much improvement."
The businessmen who insisted on anonymity spoke to The Jakarta Post separately on the sidelines of a limited meeting on problems hindering the realization of domestic and foreign investment, organized by state-owned PT Sucofindo and the board.
Except for the opening ceremony, the discussion -- attended by businesspeople and officials of various ministries -- was closed to the press.
The executives also complained about the absence of a good market information system.
Adityawan Chandra, an assistant to the minister of investment, said after the opening ceremony that the limited discussion was one of his ministry's efforts to identify the problems hindering investment realization.
Similar discussions have been held in 10 provinces: Jakarta, West Java, Central Java, East Java, Bali, North Sumatra, Riau, South Sulawesi, South Kalimantan and East Kalimantan.
The ministry has also distributed questionnaires to several companies with the same purpose.
"We'll study the input provided by the companies and evaluate why our top ten products are not doing well in foreign markets," he said.
The government selected the top ten products, which include textiles, pulp, plywood, electronics and shoes, to become the country's mainstay to increase its exports.
He said a new bill was being prepared to replace the laws on domestic and foreign investment.
"The bill, which will integrate the two laws, is expected to be completed before the year ends," he said.
He added that the negative list of investments -- closed to foreign investors -- would be maintained until 2020. (bnt)