More sectors to be opened to foreign investors
Dadan Wijaksana, The Jakarta Post, Jakarta
A government team established to formulate policies and guidelines to help jack up investment will soon finalize its on- going talks on opening up more sectors to foreign ownership.
Theo F. Toemion, the chairman of the Investment Coordinating Board (BKPM) and who also heads the team, told lawmakers at a hearing on Thursday that a concrete decision on the issue would soon be forthcoming as the plan had gained the support of all concerned.
"The plan is being supported by the business community and relevant institutions.
The details will be discussed later by the team, which will be presided over by the coordinating minister for the economy, or the President," Theo said, referring to Dorodjatun Kuntjoro-Jakti and Megawati Soekarnoputri.
The government established the National Export and Investment Promotion Team (PEPI) -- which is basically is an interministerial task force -- last year so as to devise a formula to boost exports and investment in order to increase the rate of economic growth.
Headed by Dorodjatun, the team was divided into two divisions, with Toemion chairing the investment division.
Toemion's statement, albeit falling short of details, appears to reflect the government's commitment to intensifying its efforts at improving the country's attractiveness in the eyes of foreign investors.
Plans to reduce the sectors forbidden to foreign investors had earlier been included in the government's economic white paper that was issued in August last year, but the actual talks only began after the establishment of the PEPI.
The BKPM has repeatedly said that reducing the so-called negative investment list of industries in which foreigners are prohibited from investing should increase the country's competitiveness vis-a-vis other nations in the region, thus eventually boosting investment here -- which has largely been in the doldrums since the crisis. Around 30 sectors are included on the list.
The BKPM has proposed that certain sectors be removed from the negative list, including onshore drilling services, the mining of radioactive materials, and radio and television broadcasting.
The latest data shows that the domestic investment approved by the board in 2003 reached Rp 48.8 trillion (US$ 5.74 billion), an increase of 92 percent from 2002, while foreign investment stood at $14.7 billion, an increase of 50 percent.
But experts have said a large part of the foreign investment figure consisted of existing domestic investments switching to foreign investment schemes.