Investment rules revised for local administrations
Investment rules revised for local administrations
JAKARTA (JP): The government will revise some existing
investment procedures at local administrations, which have thus
far hampered the start of project construction, State Minister of
Investment Sanyoto Sastrowardoyo said here yesterday.
"We are studying the possibility of providing one-stop-service
centers for investors at the local administration level," Sanyoto
said in a hearing of the House of Representative's Commission VI,
which deals with the manufacturing, mining and energy industries
as well as manpower and investment.
He acknowledged that apart from unprofessional personnel, some
regulations issued by local administrations have resulted in
complicated procedures, thereby hampering the construction of new
investment projects in the country.
Sanyoto, who is also chairman of the Investment Coordinating
Board, explained that there are currently at least five local
institutions which issue permits for the establishment of
investment projects.
The five institutions are the provincial office of the
National Land Agency (BPN), the provincial office of the
Investment Coordinating Board, the mayoralty/regency office of
BPN, the mayoralty/regency office of the Ministry of Public Works
and the secretariat of the regency authorities.
"All five institutions are under the supervision of the
Ministry of Home Affairs," Sanyoto said.
"I have talked to the Director General of Public
Administration and Provincial Autonomy, Sumitro Maskun, to
discuss possible solutions to some pressing problems relating to
investment procedures at local administration level," he told the
press during a break at yesterday's meeting.
He said the complicated procedure for land appropriation has
been a major problem, causing delays in the establishment of
investment projects.
The construction of 10 cement factories in Central Java, for
example, has been delayed due to problems related to land
appropriation in the province, he added.
The minister said there are 12 companies committed to
establishing new oil refineries in the country, but none of them
have started constructing their projects due to various problems,
including difficult procedures at local administrations.
"We are warning them that we will revoke their licenses if
they fail to start constructing their refinery projects three
years from the date of licensing," he said.
The companies planning to set up oil refineries include PT
Tanjung Uban Refinery in Riau, PT Buana Ganda Perkasa in
Probolinggo, East Java, PT Asia Pacific Petroleum Indonesia in
Situbondo, East Java, PT Indo Moody Oil Company Corporation in
Pare-pare, South Sulawesi, PT Sabang Oil Refinery Corporation in
Sabang, Aceh, PT Norco Internusa in Gresik, East Java, and PT
Indo-Xo Ltd. in Sorong, Irian Jaya.
The construction of the other five planned oil refineries will
be carried out by PT Hammet Oil Refinery in Serang, West Java, PT
Kilang Pare-pare Nusantara in South Sulawesi, PT Asia Pacific
Bontang in East Kalimantan, PT Paras Refining Co. in Situbondo,
East Java and PT Pusat Minyak Indonesia Timur in Lombok, West
Nusa Tenggara.
A Commission member, Iskandar Mandji, told the press that the
government could also incorporate BPN into the Investment
Coordinating Board to help solve problems related to land
appropriation. (kod)