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.