New BKPM role to up investment

New BKPM role to up investment

The Jakarta Post, Jakarta

The government denied on Wednesday that the newly signed decree
centralizing licensing procedures for investment under the
auspices of the National Investment Coordinating Board (BKPM) was
intended to scrap the power of regional governments.

The move was, instead, aimed at promoting tighter coordination
between the BKPM, relevant ministries and local administrations,
said Coordinating Minister for the Economy Dorodjatun Kuntjoro-
Jakti.

Dorodjatun said all necessary documents would still be
assessed and issued by respective local government or relevant
ministries, but this time around, it was the BKPM that would be
responsible for obtaining the necessary permits.

"All they (investors) have to do is submit a proposal for any
investment project to the BKPM, which will seek the required
documentation from local governments or relevant ministries," he
said, adding that this arrangement by no means indicated that the
government had violated the regional autonomy law.

Dorodjatun was referring to a presidential decree signed last
week in a bid to alleviate inconvenience for investors who
previously had to go from one office to another simply to secure
the requisite investment licenses.

However, the move immediately drew protest, with many claiming
it to be against the spirit of regional autonomy and
decentralization.

Syaukani HR, Kutai Kartanegara regent in East Kalimantan, who
chairs the Indonesian Regencies and Municipalities Association
(Apkasi), attacked the decree as the latest sign of government
arrogance toward the regions and a violation of the regional
autonomy law.

Dorodjatun and BKPM chairman Theo F. Toemion dismissed the
protest as being caused by simple misunderstanding.

Both insisted that the rule was aimed at boosting flagging
investment here -- particularly from foreigners -- which was
largely due to the adverse investment climate, with security and
political concerns, widespread red tape and confusion at
decentralization cited as the main reasons.

Since the crisis, Indonesia has been deprived of investment,
which is crucial to the stimulation of productive activities and
the generation of high economic growth.