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)