IRI Forum: Taking advantage

IRI Forum: Taking advantage
of new investment opportunity

The Indonesia Regional Investment Forum (IIRIF) 2003 will be
held at the Jakarta Convention Center (JCC) from July 2 to July 4
to discuss opportunities and challenges in investing in the
country's economically more independent provinces.

"The forum will provide a golden opportunity for regional
governments to convince investors that they have been relentless
in their efforts to create an investment-friendly environment,"
said Bambang Soeroso, vice chairman of the Regional
Representative Faction of the People's Consultative Assembly
(MPR), which is organizing the upcoming event.

Themed "To Accelerate Regional Investment In Conjunction With
Global Economic Competition", the forum will feature a conference
and exhibition.

President Megawati Soekarnoputri is scheduled to open the
forum, and Vice President Hamzah Haz is to witness the signing of
a memorandum of understanding (MOU) between investors and
regional administrations prior to the close of the forum.

Speakers are to include Indonesian senior ministers, top
executives of major Indonesian companies and noted economic
analysts. Trade and investment ministers from neighboring
countries are also expected to address the forum.

The conference is divided into the three separate categories
of Keynote Forum, Indonesian Perspective, and Investor
Perspective. Discussion topics include: The Economics of
Infrastructure Development: Identifying Needs and Attracting
Investment by Minister of Settlements and Regional Infrastructure
Soenarno; Realizing the Potential of Indonesia's Marine and Agro
Sector by Minister of Maritime Affairs and Fisheries Rokhmin
Dahuri; Investing in Indonesia's Mining and Energy Sector by
Minister of Energy and Mineral Resources Purnomo Yusgiantoro.
Future Prospect of Investment in Indonesia to be presented by
Harvest International's President Director Harvey Goldstein; and
Investing in Indonesia: Freeport Story by PT Freeport Indonesia's
President Director Adrianto Machribie.

"The guests will also be involved as speakers at the seminar,
presenting their perspective on investment activities in their
respective countries," said Bambang.

The exhibition will also feature potential investment areas in
various regencies and cities. "Each regional government will
provide information on their potential and readiness to cooperate
with prospective investors," he said.

The highlight of the IIRIF will be the signing of the MOU
between investors and regional governments, to be witnessed by
the Regional Representatives Faction of the MPR.

Initial activities have been launched by the organizing
committee to ensure the success of the big event. These efforts
include road shows to each province in Indonesia as well as to
several other countries in the region. "We have visited the
Philippines and Malaysia, and will visit Singapore next week.

"An effort is also underway to promote the investment forum in
several European countries, including the United Kingdom, the
Netherlands, Spain and Germany," Bambang said, adding, "On behalf
of our legislators, we guarantee that Indonesia is currently safe
to receive investors."

One of the most important points gained from the overseas road
show, is the growing demand for security and legal certainty and
tangible efforts to avoid possible losses incurred by investors.

"In response to the demand, we are working jointly with the
Coordinating Minister of Security and Political Affairs Soesilo
Bambang Yudhoyono, who also shares the same concerns on the need
to improve regional security. The minister is scheduled to
provide an overview on security concerns at the forum," Bambang
said.

He said that through the forum, governors and regents were
expected to become aware that some of their economic policies,
such as the imposition of levies introduced as part of the
regional autonomy, had seriously hurt the investment climate and
discouraged investors in their respective region.

"The regional autonomy has been wrongly perceived by several
regional governments, and this mistaken perception has
subsequently driven them to issue regulations that are contrary
to the spirit of decentralization," he said.

"Our task is to make them aware of this, and to ask them not
to repeat it," he said.

To attract investors to the regions, regional governments are
encouraged to set up less complicated and less bureaucratic
investment procedures so that investors can obtain their
investment permits or other business licenses quickly.

"At least, the regional governments have a strong commitment
to providing a one-stop investment service," he said.

With the regional autonomy, investors should be able to apply
for investment permits from regency-level administrations,
instead of through the provincial authority or the central
government.

The event is being organized by the Regional Representatives
Faction of MPR in cooperation with the association of regency-
level governments (APKASI), the association of the Indonesian
municipality (APKESI), and the Indonesian Chamber of Commerce and
Industry (KADIN).