Govt puts BKPM under Ministry of Trade

Govt puts BKPM under Ministry of Trade

Zakki P. Hakim and
Muninggar Sri Saraswati
The Jakarta Post/Jakarta

The government has placed the Investment Coordinating Board
(BKPM) under the coordination of the Ministry of Trade in a bid
to boost investment in the country.

Minister of Trade Mari E. Pangestu said on Monday that based
on presidential regulation No. 11/2005, her ministry would
support the investment agency in terms of policy coordination in
various business sectors.

"We realize that investment concerns so many sectors. So, our
task is to help and coordinate with the BPKM. We'll help
coordinate the policies in each sector, but the BPKM will still
be the one to implement those policies.

"It has been the ministry's responsibility to decide which
sector will be open to investment and which will not. Now, we
have a wider responsibility," Mari said.

Established in 1973, the BKPM was created with the purpose of
coordinating the realization of foreign and domestic investments
in the country. It reports directly to the President.

However, the board has been a subject of criticism due to the
country's continued sluggish investment performance, especially
from offshore, with the investment climate having yet to
drastically improve.

According to a 2004 World Bank survey, it took 156 days to
start a business in the country -- among the longest time needed
in the Asia-Pacific region, where the average time to start a
business was about 50 days.

Reports have it that the licensing process had become time-
consuming largely because of the abundant, often overlapping,
procedures an investor had to go through at relevant state
institutions.

Placing the BKPM under the Ministry of Trade is also designed
to help better coordinated related ministries.

Moreover, Mari said that part of her new responsibility was to
synchronize efforts to promote trade and tourism to the
international world.

"At the end of the day, we will all be responsible to the
President," said Mari.