Govt centralizes investment permits

Govt centralizes investment permits

The Jakarta Post, Jakarta

President Megawati Soekarnoputri has signed a decree centralizing
permits and facilities for foreign and domestic investment to end
the confusion resulting from the regional autonomy program.

The decree, signed under the National Coordinating Investment
Board (BKPM), was made available to the public on Thursday.

It aimed to help guide investors to the relevant authorities
and make the country a more attractive place to invest in, the
decree's wording said.

"In an effort to improve the effectiveness of attracting
investors to Indonesia, it is deemed necessary to streamline the
investment service system through a one-roof investment service
method," the decree said.

The ruling will remove the powers of regional leaders to grant
investment approvals, permits and other facilities. Governors,
regents and mayors were earlier granted these powers under the
regional autonomy program.

The move is likely to encourage further investment in the
country, which has been struggling to attract investors since the
post-crisis era.

Since the start of regional autonomy in 2001, foreign
investors have complained about the large number of confusing
permits and levies, both legal and illegal, imposed by regional
governments.

According to BKPM data, foreign direct investment approvals in
the first two months of this year had declined by about 70
percent compared to the same period last year.