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)