M^MRI prepares new law to draw more investments

M^MRI prepares new law to draw more investments

Agencies
Tokyo

Indonesia is eying new legislation to provide foreign
investors with greater incentives, such as relaxed regulations
and an improved legal system, in order to attract more Japanese
investment, a senior Indonesian official said on Wednesday in
Tokyo.

Theo Toemion, chairman of Indonesia's Investment Coordinating
Board (BKPM), said the Indonesian government would send to
parliament by December a draft investment law that would improve
the country's investment climate, including a streamlined
regulatory framework and enhanced industrial competitiveness.

Our economic growth depends heavily on new investment and
increases in exports," Theo told a meeting with Japanese business
leaders in Tokyo, calling for more Japanese investment in
Indonesia.

He urged Japanese investors to focus more on Indonesia's
small and midsize firms, saying, "There are numerous
opportunities for overseas investors to invest directly or work
with those enterprises seeking to expand their operations."

He said Indonesia's small and midsize companies are "very
resilient" and form the "backbone" of the economy, which has
bounced back from a slump after being hit by the 1997 Asian
financial crisis.

It is becoming clear that the traditional approach of
promoting large new investments will not bring quick results
under the present conditions," he said.

It is more likely that broad-based organic growth of small
and midsize firms is required to stimulate growth in the large
enterprise category," he said.