Small business still out: BKPM

Small business still out: BKPM

JAKARTA (JP): State Minister for Investment Sanyoto
Sastrowardoyo said yesterday that business activities reserved
for small-scale businesses would remain closed to foreign
investment.

"Like the retail sector, business activities especially
reserved for small companies remain closed to foreign
investment," he said.

Minister for Cooperatives and Small Enterprises Subiakto
Tjakrawerdaya expressed concern last week over a statement made
by Sanyoto concerning his office's efforts to encourage foreign
investors, particularly from Japan, to establish light industries
in Indonesia. Subiakto said an influx of foreign investors into
light industries could hurt small local companies, which were
facing problems, he said, not only in financing but also in
marketing and management.

Sanyoto, also chairman of the Investment Coordinating Board,
said yesterday that the existing investment regulations clearly
specified which business sectors foreign investors may enter.

"We have no plans to change the present investment
regulations," he said following a ministerial coordinating
meeting on trade, finance, investment and industry.

The government's June 1994 foreign investment deregulation.
package abolished minimum investment requirements and removed
divestment requirements in all but the infrastructure sector.

Sanyoto said that foreign investors were barred only from
entering business sectors on the negative list for foreign
investment and those reserved for small domestic companies.

The special business activities reserved for small domestic
companies are mainly handicrafts, such as the production of
souvenirs and hand-made batik garments.(hen)