House Commission VII: Licensing Remains Biggest Hurdle in Investment Sector

Semarang (ANTARA) - The House of Representatives (DPR) Commission VII has stated that licensing remains the most significant obstacle in the investment sector, including the development of industrial estates in the regions. “From our experience in the field, the biggest issue is licensing,” said Evita Nursanty, Deputy Chair of Commission VII, during a working visit in Semarang, Central Java, on Monday. “If there are many complaints about licensing, it is understandable. Moving from one door to another can sometimes take one to two years,” she added. According to her, almost all investment sector players she has met complain about licensing issues, particularly regarding the Environmental Impact Analysis (Amdal). “Everyone says the same thing. This means the Ministry of Industry must take note. Why has this problem persisted for years? Whatever the reason, a solution must be found,” she said. She warned that due to these licensing hurdles, investors are cancelling their investments and moving to other countries, such as Vietnam, where the licensing process is perceived to be easier. Evita expressed hope that the Industrial Estates Bill would resolve various issues hindering industrial development and investment. “This law has never existed before. We hope it can synchronise and harmonise existing regulations across ministries and agencies,” she stated. The discussion also touched on accessibility issues, such as the need for railway stations within industrial estates. Evita noted that the commission would coordinate with relevant ministries and PT Kereta Api Indonesia (KAI) to address this. “The request is not a heavy one. They just want a station built so trains can stop there. Currently, they don’t stop, even though the need exists,” she said. Sugeng Riyanto, Acting President Director of PT Kawasan Industri Wijayakusuma (KIW), said he hopes for support in development, including the construction of a railway station, access to national roads, and the utilisation of raw water. “We hope to be able to process it ourselves and provide services to our tenants, as they have specific requirements for clean water and pure water,” he said. Currently, there are at least 116 tenants or industries operating within KIW, including new investors this year, predominantly from foreign direct investment (PMA). The working visit was also attended by Commission VII members Yoyok Riyo Sudibyo, Eva Monalisa, and Bambang Haryo Soekartono, as well as ANTARA News Agency Director of News Virgandhi Prayudantoro.