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)