Foreign investment permits ready in less than a month

JAKARTA (JP): Simplification of licensing means foreign investment licenses can now be issued in less than a month, a minister said on Thursday.

State Minister of Investment/Chairman of the Investment Coordinating Board (BKPM) Hamzah Haz said licenses for foreign investment under US$100 million could be issued in 10 days.

Licensing for foreign investment over $100 million would take up to 20 days, he said.

"Setting a transparent timetable is part of our efforts in giving incentives, creating a healthy and favorable business climate in order to attract more local and foreign investors," he said in a seminar held by his office with the Japanese International Cooperation Agency (JICA).

Hamzah said the government also signed investment guarantee and protection agreements with several countries to encourage foreign direct investment. Among them were Japan, Korea, the United States and several European countries.

He said the government would continue to streamline paperwork procedures to facilitate operations of foreign and local investors in the country.

The investment board has been widely criticized for poor service, red tape and complicated licensing procedures. Many investors have complained they have to wait for months to obtain investment licenses.

The minister said the government's main priority was eliminating red tape and cutting involved bureaucratic steps in the issuance of investment licenses.

Hamzah said the board's provincial offices were also ordered to list business opportunities in their areas, especially in the agribusiness and mining sectors, which could be promoted to local and foreign investors.

Facilities, he said, would not only be given to potential investors, but also to ones already established in the country.

Hamzah said his office was considering placing staff in Indonesian embassies abroad to provide preliminary approval for prospective foreign investors.

The government approved 130 foreign investment projects worth $339 million in the first two months of the year.

He said the commitments showed the country was still attractive and safe for investment despite the crisis.

"Many people doubt if there are investors interested in opening businesses in Indonesia in a time of crisis like this. But the fact is that we have approved 130 projects for foreign investors in the first two months," he said. (gis)