Govt issues only one industrial investment license

CIKAMPEK, West Java (JP): Minister of Industry and Trade Tunky Ariwibowo told local administrations not to pass any regulations requiring licences for investment projects on industrial estates.

"The local administration should not require anything which will hamper investment in industrial estates," the minister said in a ceremony to mark the inauguration of PT Indopoly's plant at the Bukit Indah City industrial estates here yesterday.

The ceremony was also attended by West Java Governor R. Nuriana and the company's commissioners, Liem Sioe Liong (Sudono Salim) and Ibrahim Risjad.

Indopoly, owned by the Salim Group, produces biaxially oriented polypropylene film which is used to manufacture isolating tape as well as packaging for food, spices, drugs and cigarettes.

Tunky said that the government is encouraging investors to set up shop on industrial estates, the better to control the management of waste and pollution.

He said that investors setting up factories on industrial estates only need one license approved by either the President or the State Minister of Investment or related ministries in the case of domestic investment.

"So if investors get problems from local administrations relating to the project permits just let me know and send me a report on my private fax number (798141) or e-mail," Tunky said to applause at the ceremony.

He reiterated that all the other requirements for setting up industrial projects have been included in the investment license.

Tunky said that all government and local administration officials must preserve the confidence of international investors in Indonesia.

He said that international confidence is vital to support Indonesian efforts to reduce imports and increase exports.

"We should be worried about the high growth rate of Indonesia's imports compared to our exports," said the minister.

He said the Indonesia's exports reached US$46 billion in the 1995/1996 fiscal year, while imports totaled $41 billion.

The country's exports are projected to increase to $75 billion in 1998/99.

In yesterday's ceremony, the minister witnessed the departure of two containers of polypropylene film for export to the Philippines and Hong Kong.

Indopoly's president, Henry Halim, said that the company's plant has a production capacity of 100,000 tons of polypropylene film per annum, of which 20 percent is exported.

Henry ventured that his company has good prospects because domestic demand for such film is currently very low, about seven kilograms per capita per year, far lower than the 154 kilograms in Japan and the 230 kilograms in the United States. (kod)