Govt to simplify licensing procedures

Govt to simplify licensing procedures

BEKASI, West Java (JP): Determined to encourage further
investment, the government will continue deregulation through the
simplification of licensing procedures, Minister of Industry
Tunky Ariwibowo said yesterday.

"We are determined to further encourage domestic investment
and the relocation (to Indonesia) of multinational corporations
by continuing deregulatory measures," Tunky said during an
inauguration ceremony for a computer printer plant owned by PT
Indonesia Epson Industry in Bekasi, West Java.

He noted that deregulatory measures already taken included
the establishment of new entrepots for export-oriented producers,
the simplification of export and investment procedures and tariff
protection.

Companies operating at such entrepots are exempted from import
duties on raw materials and components for the manufacture of
their export-oriented products. Foreign companies are now also
allowed to hold 100 percent equity in an investment project.

Indonesia Epson Industry is a wholly-owned subsidiary of the
Seiko Epson Corporation of Japan, which specializes in the
production of terminal printers.

The Bekasi plant, which started operations in February with a
paid-up capital of US$11 million, is Epson's second factory in
Indonesia after its first plant in Batam, Riau.

The Bekasi plant produces 30 types of printer components and
assembles three types of printers with monthly production of
100,000 components and 60,000 printers.

The company, which employs 526 workers in Indonesia, expects a
turnover of $80 million in 1995.

Tunky said that Indonesia's exports of electronic and
telecommunications equipment had increased by an average of 70
percent per annum in recent years; from $267 million in 1990 to
$2.28 billion in 1994.

He said there are 65 firms producing data processors and 23
companies manufacturing printers in Indonesia. (kod)