PDI-P legislator named BKPM chief

JAKARTA (JP): Theo Thoemion, a legislator of the Indonesian Democratic Party of Struggle (PDI P), has been named the new chief of the Investment Coordinating Board (BKPM).

Coordinating Minister for the Economy Burhanuddin Abdullah said on Wednesday the inauguration would take place on Friday.

Speaking to reporters following a Cabinet meeting on the economy with Vice President Megawati Soekarnoputri, Burhanuddin said Theo's main mission would be to promote investment in the country to help accelerate economic recovery.

"We need a man who understands the market and know how to promote investment," he said.

Theo, a currency analyst turned politician, is a member of the House of Representatives Commission IX for state budget and finance. He is also the head of the House special team debating the government-proposed bill on the amendment of the central bank law.

Theo worked at Bank Indonesia for several years before becoming an independent currency analyst.

Since the Cabinet reshuffle in August last year, BKPM effectively had no chief. The agency, which oversees investments in the country, was previously under the now defunct ministry of investment and state enterprises development. President Abdurrahman Wahid dissolved the ministry in August.

Investment in the country has sharply declined during the past three years due to the economic crisis, political instability, and security problems.

The new regional autonomy has also discouraged investors as provincial and district administrations have been imposing new local taxes to help finance their administrations.

Increasing labor protests demanding better salaries have also created jitters among businesses and investors. (rei/dja)