Foreign investment permits ready in less than a month

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)