Govt strips BKPM of power, Theo's post is vacated

Govt strips BKPM of power, Theo's post is vacated

The Jakarta Post, Jakarta

Amid talks of replacing Investment Coordinating Board (BKPM) head
Theo F. Toemion, the government is aiming to strip away some of
the agency's authority.

Minister of Trade Mari Elka Pangestu said on Monday the
government would strip the authority of BKPM to issue investment
approvals so as to reduce time needed for foreign businesses to
start operations here.

At present, the BKPM is authorized to process all investment
permits as well as certain other licenses related to business
activity.

"Later on, it will be enough for businesses to go to a local
public notary to get approval and registration," said Mari,
adding that the notary would then process the necessary
requirements at other ministries.

The government has also lowered the status of the BKPM and put
it under the coordination of the Ministry of Trade. But it still
directly reports to the President.

The chairman's post at the agency is expected to become vacant
with Theo planning to resign, just days after reports of his
much-criticized alleged assault on expatriates at an
international school during a children's sporting event.

According to his secretary, Nurul, Theo's resignation letter
would be submitted to President Susilo Bambang Yudhoyono on
Tuesday, as some corrections and adjustments to the letter still
have to be made.

Theo allegedly struck a 14-year-old student referee and
scuffled briefly with foreign residents at the Jakarta
International School (JIS) during a basketball competition in
which Theo's seven-year-old son was playing on April 17.

Theo, a former legislator with the Indonesian Democratic Party
of Struggle (PDI-P), admitted to slapping the referee in the
face, trying to grab the shoulder of the woman coordinating the
competition, and overturning furniture after his son was fouled
out of the game.

Meanwhile, in response to Theo's resignation plan, Mari said
the President would soon pick a replacement, but in the meantime,
an ad-interim official from inside the BKPM might fill the
board's top post.

The government is currently examining three candidates to
replace Theo. According to State Minister of Administrative
Reform Taufik Effendi, the replacement is unlikely to be
appointed in the near future.

"We have prepared the candidates, but selection is still at a
preliminary stage. Thus, I don't think it will be concluded
soon," he said after accompanying Susilo at a ceremony on Monday.

Coordinating Minister for the Economy Aburizal Bakrie welcomed
Theo's plan to resign as BKPM chairman.

"It's good if he wants to resign. He thinks it's high time,"
said Aburizal at the State Palace on Monday.

Established in 1973, the BKPM was created with the purpose of
coordinating the realization of foreign and domestic investment
in the country.

However, the board has been a subject of criticism due to the
country's continued sluggish investment performance, especially
from offshore.

Placing the BKPM under the Ministry of Trade was also designed
to assist in better coordinating the related ministries.