Sunday, 31 August 2008

Government to restrict new factories outside estates

The government is preparing a draft regulation banning construction of new factories including expansion units outside industrial estates, Asia Pulse reported. The draft regulation is expected to be signed by President Susilo Bambang Yudhoyono before the end of this year, said Edy Putra Irawady, a deputy at the Office of the Coordinating Minister for Economic Affairs. The draft regulation will allow exceptions for certain factories which have to use certain basic materials and operate in certain locations such as cement factories, the newspaper Bisnis Indonesia said. Violation of the regulation will face administrative sanctions such as suspension or revocation of business license. The regulation is aimed mainly at simplification in the management and processing of industrial waste and for efficiency in supply of energy and provision of supporting facilities.

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