Thu, 17 Jun 2010

TEMPO Interactive, Jakarta: The House of Representatives accepted additional budget request from Investment Coordinating Board for next year, which will put the new proposed budget at Rp535.7 billion or Rp100 billion higher than the previous projection.

In a hearing between the investment board and the house commission overseeing state companies on Wednesday (16/6) the investment board argued that the raise was necessary to improve its capacity in raising drawing investment and meet the investment target of Rp10,000 trillion within the next five years.

Gita reminded that well prepared fiscal instruments, and infrastructures are two of the most mportatnt factors to support the policy. “Target to build 20,000 kilometers of road and supply another 15,000 watt of electricity should be met. Without those infrastructures and careful budget plan, it will be impossible to achieve the investment target.”

Promotion Gita said is another important mean to appeal investors. He took the aggressive marketing drive by Malaysia and India as examples, which could spend billions of dollars to run ads on international media like CNN, BBC, Forbes, Times, and at International Airports, “While we have not had the budget for the spending.”

He also suggested that the government should learn from Singapore's investment regulator which could assume the co-investor role in any investment to provide foreign investors with a sense of confidence in making decision.

The commission will brought up the proposal in further budget hearing with the Finance Department, but despite the support, head of the investment board Gita Wirjawan said “logically there's no way to cover even just the cost if the target is Rp2,000 trillion.”