Govt resolves problems faced by Japanese firms

Govt resolves problems faced by Japanese firms

The Jakarta Post, Jakarta

The government has made substantial progress in resolving
problems faced by Japanese companies operating in this country,
according to a press statement issued on Thursday by the Office
of the Coordinating Minister for the Economy.

The statement was made following a regular consultation
meeting on Wednesday between economics ministers and the Jakarta
Japan Club, whose members include some 380 Japanese companies.
The meeting was chaired by Coordinating Minister for the Economy
Dorodjatun Kuntjoro-Jakti.

"Out of 79 topics relating to problems and obstacles faced by
Japanese investors in Indonesia, 42 problems have been resolved,
30 are still in the process of further discussion, and seven are
difficult to resolve as they are linked to existing laws," the
press statement said.

From the 42 problems which have been resolved, 14 were
considered very urgent, it said. This includes problems and
obstacles in the area of customs procedure, taxation, and labor
affairs.

Japan is one of Indonesia's main foreign investors. Investment
activities in the country have been dwindling during the past
couple of years due to various problems. The government is now
under pressure to push investment, which is seen as a key factor
if the country wants to enjoy higher economic growth.

Indonesia's economics ministers and other related senior
government officials have been meeting regularly with the Jakarta
Japan Club to seek ways to help improve investment climate in
this country. The regular meeting was a result of the visit by
President Megawati Soekarnoputri to Tokyo in 2001. So far the two
sides have met seven times.

The consultation forum is divided into five sub-commissions,
including on excise and customs, taxation, labor, investment
promotion and development of supporting industries, and energy.

The press statement did not disclose the areas that have not
been resolved.

But the problems that have already been resolved, among others
are: accelerating customs clearance procedure; curbing illegal
fees in customs clearance; improving information systems;
streamlining customs documents; setting up a one-stop center;
streamlining import procedure of used machinery; issues on value
added tax; and definitions of valid labor strikes.