Govt prepares measures to promote investment
Govt prepares measures to promote investment
JAKARTA (JP): The government is preparing special measures to
improve the business climate, to attract more investment, so that
the investment target of Rp 815 trillion (US$360.3 billion) can
be achieved within the Sixth Five Year Development Plan period.
Minister of Investment/Chairman of Investment Planning Board
Sanyoto Sastrowardoyo said Monday evening in a meeting, that
under the planned measures, the government will, for example,
help lower the costs for sea and air transportation.
The government is also considering offering incentives which
will encourage companies to improve efficiency, Sanyoto said in
his written address at the meeting for the promotion of
investment in Southeast Sulawesi.
His address was read out by Sugihono Kadarisman, a deputy
chairman of the Investment Coordinating Board.
Sanyoto said the measures will be emphasized more on the
promotion of investment activities in the country's eastern
provinces, including Southeast Sulawesi.
Last week, President Soeharto said in his state address before
a plenary session of the House of Representatives that the
country's investment target, originally estimated at Rp 660
trillion during the current five-year plan period, beginning in
1994, should be revised upward to Rp 815 trillion, to achieve a
higher growth rate in the country's economy.
He said the government aims at accelerating the growth of the
country's economy to an average of 7.1 percent in the five-year
period, as compared to the original target of 6.2 percent.
Sanyoto acknowledged that it will be difficult to reach the
investment target of Rp 815 trillion without any improvement in
the business climate.
Economists have commented that a higher economic growth would
be easily achieved if the government eradicated corruption and
collusion between certain business people and government
officials.
Sanyoto said he was sure that the planned measures will be
able to increase the inflow of foreign investments into
Indonesia.(31)