Dorodjatun tries to woo KL business

Fadli, The Jakarta Post, Kuala Lumpur

Coordinating Minister for the Economy Dorodjatun Kuntjoro- Jakti encouraged on Monday more Malaysian businesspeople to invest in Indonesia, saying the Indonesian government was continuing to create a conducive climate for business.

He called on the neighboring country's businesspeople not to worry about investing in the country as the economy was improving following reform and democratization.

"Reform, both in legal affairs and the land sector, will continue," Dorodjatun told a seminar titled "Economic Scenarios for Indonesia in the Future" here on Tuesday.

He added that the Indonesian government was fully aware that it needed an increase in foreign investment and exports to reduce the unemployment rate and eradicate poverty.

Therefore, he said, the government has reformed or is reviewing various policies to create a more attractive climate for investment.

He said the government was now focused on eight sectors -- customs, tax, labor, regional autonomy, infrastructure, law, water quality and cargo delivery -- which investors say have created lots of problems for doing business in Indonesia.

"We are making some effort to solve the problems in those eight sectors," he said.

On security and terrorism, he said, Indonesia was a victim of terrorism, with bomb attacks in Bali in October last year and at JW Marriott Hotel last August. He noted, however, that the Indonesian Police were grappling with terrorism and would continue to deal with it.

During the seminar, several Malaysians said they were interested in investing in Indonesia in the information and communication technology sector, the agricultural sector and the development of toll roads, power plants and airports.

They, however, would not start making any plans until after the general election next year.

"We have carried out surveys in Yogyakarta, Makassar and Bali for possible investment. However, on the advice from Tanri Abeng, we shall not start investing until after the general election next year," Ahmad Sarji bin Abdul Hamid, co-chair of the Malaysia-Indonesia Business Circle, referring to Indonesia's former Minister of State Enterprises.

He noted that Malaysian investors needed more security assurances and less red tape if they were to invest in Indonesia.

"Bureaucratic delays should not be so long, while improved facilities for land and customs are necessary as an attraction for investors," he said.

Chairman of the Batam Industrial Development Authority (BIDA) Ismeth Abdullah said the industrial island of Batam in Riau province was a good place for investment.

He said he had proposed that the government legalize Batam's status as a free trade zone.

BIDA's data shows that Malaysia is the third-largest investor in Batam. There are now 49 Malaysian companies operating in Batam with a total investment of US$152 million.