JICA helps RI to promote investment

The Jakarta Post, Jakarta

The Japan International Cooperation Agency (JICA) said on Monday that it was committed to providing assistance to the government of Indonesia on how to attract more foreign investment.

JICA resident representative Kanda Michio said that the assistance would include financial and technical support to promote investment opportunities here.

Speaking in a seminar held jointly by JICA and the Investment Coordinating Board (BKPM) to launch the agency's latest study on investment opportunities in the Sumatra region (including Lampung, Bengkulu, Jambi, Padang, Riau and Batam), Michio said that JICA had been advising the government of Indonesia in formulating laws and regulations on investments.

He said that it was crucial for the government to follow global standards when formulating such laws and regulations to attract foreign investments.

He explained that investment had a big influence on the development of the economy.

The government is currently drafting a new law on investment.

BKPM Chairman Theo F. Toemion said that the investment bill would be handed over to President Megawati Soekarnoputri this week.

He said that the new bill would give equal treatment to foreign and domestic investors.

Foreign investors have been avoiding Indonesia for various reasons, including political and economic problems and legal uncertainties.

Foreign direct investment approvals declined to US$9.03 million last year from $15.43 million in 2000.