Poor services still hamper investments
Poor services still hamper investments
JAKARTA (JP): Poor services, inadequacy of regulations and
high-cost economy are hampering investment, chairman of the
Jakarta investment coordinating board, Ery Chayaridipura says.
Ery said yesterday the three factors had become the main
constraints in the city administration reaching its target in the
Sixth Five-Year Development Plan (Repelita VI).
"Services must be improved so investors get everything they
need, including information as soon as they want. Whereas proper
regulations are needed to guarantee a healthy business climate,"
Ery said, adding that illegal levies and bribery, which cause
high-cost economy, must be eliminated.
To attract more investors the administration should provide
adequate infrastructure such as roads, electricity and
telecommunications. Clear regulations on coordination among
related offices in charge of investment affairs and establishing
infrastructure are badly needed, he said.
A one stop service for investors to obtain permits quickly
must also be made available.
According to Ery, the city administration must deal with these
problems appropriately if it wants to reach its target of gaining
Rp 127 trillion (US$56.44 billion) in investment commitments in
this Repelita VI, beginning in April last year.
He said eliminating the obstacles is imperative because most
of the target is expected from private investors. "We expect 6
percent of the investment from the government."
Board records show that investment commitments in the first
six months of this year reached $1.28 billion.
About $350 million worth of commitments is from 63 foreign
investors, while the remaining $935.81 million (Rp 2.05 trillion)
is from 66 domestic investors.
Ery admitted it would be difficult for the administration to
reach the target. He, however, said he was optimistic because he
saw the administration's determination in eradicating the
obstacles, and the significant economic growth.
"The target was actually set based on the Jakarta economic
growth of 8.23 percent per year," Ery, former head of the city
development planning board, said.
He said he planned to visit all offices concerning investment
affairs periodically to make sure that investors obtain good
services and complete information.
"However, an investor must also provide the proper documents
as required by regulations."
Speaking of the investment climate, Ery said that there has
been a transition since the beginning of the Sixth Five-Year
Development Plan. "Investors tend to invest in service, business
and tourism sectors."
The transition is influenced by various aspects such as land
prices. "Investments which need large areas and water are not
interesting to investors. Land is too expensive here," he
said.(yns)