Investment Ministry to Establish Business Partnership Mechanism to Combat Investor Intimidation
Jakarta (ANTARA) - The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) has announced it will manage a business partnership mechanism between local entrepreneurs and investors to maintain a conducive investment climate in the country.
The move comes in response to recent cases of thuggery against investors, most recently an act of intimidation by individuals claiming to represent the Cilegon Chamber of Commerce against the management of PT Chengda, the main contractor for PT Chandra Asri Alkali (CAA), a petrochemical company in Cilegon, Banten.
Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu explained in Jakarta on Wednesday that under this business partnership mechanism, regional governments through their Investment and One-Stop Integrated Services Offices (DPMPTSP) would conduct licensing selection, whilst investors would provide a list of work that could be undertaken by vetted local businesses.
"The regional government will carry out the selection process, and investors will also provide a list of work that can be contributed to local business operators," he said.
He stated that the business partnership would be managed through the Online Single Submission (OSS) system, with the aim of making investment project management in the regions transparent whilst mitigating activities outside proper channels.
Furthermore, he said the intimidation case involving individuals claiming to represent the Cilegon Chamber of Commerce marked a turning point for his institution to address such disruptive activities comprehensively.
The government is currently focused on boosting economic growth above 8 per cent, with one of its key strategies being the promotion of investment growth. Todotua expressed regret over the Cilegon incident and said the matter would be referred to law enforcement for further processing.
"The key point going forward is to create a deterrent effect," he said.
Previously, the Indonesian Chamber of Commerce and Industry (Kadin) announced it would develop standard operating procedures (SOPs) regarding Kadin's involvement in strategic projects following the incident involving members of Kadin Cilegon at the PT Chandra Asri Alkali (CAA) project.
The SOP initiative was announced alongside Kadin's firm stance rejecting all forms of pressure and intimidation that could disrupt the investment climate.
"To prevent similar incidents in the future, Kadin will develop SOPs for regional participation in investment projects, including a code of ethics for interactions with investors and contractors," read one of the points in Kadin Indonesia's official statement released in Jakarta on Wednesday.
The move comes in response to recent cases of thuggery against investors, most recently an act of intimidation by individuals claiming to represent the Cilegon Chamber of Commerce against the management of PT Chengda, the main contractor for PT Chandra Asri Alkali (CAA), a petrochemical company in Cilegon, Banten.
Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu explained in Jakarta on Wednesday that under this business partnership mechanism, regional governments through their Investment and One-Stop Integrated Services Offices (DPMPTSP) would conduct licensing selection, whilst investors would provide a list of work that could be undertaken by vetted local businesses.
"The regional government will carry out the selection process, and investors will also provide a list of work that can be contributed to local business operators," he said.
He stated that the business partnership would be managed through the Online Single Submission (OSS) system, with the aim of making investment project management in the regions transparent whilst mitigating activities outside proper channels.
Furthermore, he said the intimidation case involving individuals claiming to represent the Cilegon Chamber of Commerce marked a turning point for his institution to address such disruptive activities comprehensively.
The government is currently focused on boosting economic growth above 8 per cent, with one of its key strategies being the promotion of investment growth. Todotua expressed regret over the Cilegon incident and said the matter would be referred to law enforcement for further processing.
"The key point going forward is to create a deterrent effect," he said.
Previously, the Indonesian Chamber of Commerce and Industry (Kadin) announced it would develop standard operating procedures (SOPs) regarding Kadin's involvement in strategic projects following the incident involving members of Kadin Cilegon at the PT Chandra Asri Alkali (CAA) project.
The SOP initiative was announced alongside Kadin's firm stance rejecting all forms of pressure and intimidation that could disrupt the investment climate.
"To prevent similar incidents in the future, Kadin will develop SOPs for regional participation in investment projects, including a code of ethics for interactions with investors and contractors," read one of the points in Kadin Indonesia's official statement released in Jakarta on Wednesday.