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.