RI opens the door to further ASEAN investments
RI opens the door to further ASEAN investments
Evi Mariani, The Jakarta Post, Jakarta
Indonesia has fully phased out its temporary exclusion list
(TEL) in the industrial sector for investment from Association of
Southeast Asian Nations (ASEAN) member countries in 2003, and is
ready to do the same for four other sectors -- agriculture,
mining, forestry and fishery -- by 2010, in accordance with the
ASEAN Investment Area (AIA) protocol.
The AIA protocol requires ASEAN members to liberalize the five
sectors mentioned above and business services related to those
sectors for ASEAN direct investments by 2010 and for non-ASEAN
investments by 2020.
Director of Regional Cooperation for the Investment
Coordinating Board (BKPM) Rizar Indomo Nazaroedin said that
earlier this year, the country phased out the pesticide industry
from the TEL.
The step has opened the sector to foreign direct investment
from the other nine ASEAN member countries.
As for the four remaining sectors, Rizar explained that there
was a possibility that the government would open them before
2010, but he could not provide a timeframe.
"BKPM's job is to promote investment, but it doesn't have the
authority to determine which sectors are to be opened first," he
said. "It is the ministries, like the agriculture, forestry or
mining ministries, who have the authority."
He added that BKPM planned to hold an inter-ministerial
meeting by the end of June to discuss matters related to the AIA
protocol.
"However, Indonesia has not opened certain industries included
in the sensitive list or the negative investment list, such as
the arms industry," he said.
Included in the negative investment list as stipulated by
Presidential Decree No. 96/2000 are, among others, industries
producing weapons and related components, cyclamate, saccharine
and alcoholic drinks.
In sectors other than the manufacturing industry, natural
forest concessions, mining of radioactive minerals and collecting
or utilizing sponges are also included on the negative investment
list.
The AIA protocol was endorsed in September 2001 in order to
increase foreign direct investments from ASEAN as well as non-
ASEAN countries by liberalizing the region and raising its
competitiveness.