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.