All
the regencies and cities in Indonesia were consolidating to drum up investors to
come to the respective regions. In the effort to draw investors, there were nine
aspects of investor expectations which should be understood by the regional
Governments. The nine aspects were known by outcome of survey on some local and
global investors who were entering or already investing in Indonesia. The
aspects were among others access to land, regional infra-structure, business
permit, transaction expenses, capacity and integrity of Regents/mayor,
interaction between Regional Authorities and businesspeople, private business
development program, security, and conflict settlements.
The
Committee for Regional Autonomy Execution Monitoring (KPPOD) were making survey
on the nine aspects in some regencies/cities in Indonesia. The survey concluded
that infra structure management was regarded by investors as one of the important
aspects which determined their decision whether or not to invest in any region
or to develop their business.
The Executive Director of KPPOD, Robert Endi
Jaweng disclosed in Jakarta on Friday (11/1/2013) that infra-structure was one
the most important aspects in creating investment climate in the regions which
might propel growth of the private sectors. This was most needed by the religions
to step up economic growth, create employment opportunities and minimize
poverty. “To investors, infra-structure has become the most important aspects
and if we look at the condition in some region, apparently the quality of
infra-structure is still inferior. That’s the reason why investors demand
better infra-structure” Robert remarked.
Furthermore
Robert said that KPPOD also stressed on the importance of strong commitment of
the bureaucracy to create hospitable business climate at central and local
Government to overcome handicaps in investment in Indonesia without edging aside
the small people. He believed that there was no instant solution to cure the
five ‘disease’ of investment climate in Indonesia. All the classical obstacles
which held back investment could only be tackled through continuous long term
policy.
According
to Robert, again only normative solution must be exercised by the Government
seriously and sustainably, among others by fostering collaboration between
Central Government and local Government and investors and to ensure legal
certainly and institution in the regions for investment service. He underscored
that the central and local governments must accommodate investor’s interest by
sound proof, such as assurance in space planning and one-stop service in permit
issuance.
However,
Robert remanded that the spirit of land clearing and creation of business
climate which was contusive to progress must still respect the right of the
general public, particularly land owners. The point was that the negative impact
of national economic development plan people’s welfare must be minimized. “It
must never happen that the Provincial Government wish to increase regional
income by sacrificing people’s rights” Robert remarked.
According
to Robert, publication and illumination for the public was necessary, it should
never happen that investors had entered to invest their capital in the region,
but the people refused. Where there was no illumination there was uncertainly
for investors. Besides, Robert said, serious effort was needed by the Regional
Government to step up skill and competence of the local workforce who would be
employed by the investors. The objective was that the experts skilled workers
to be employed by investors were taken from the local human resources, instead
of recruiting from other regions or from abroad. It must not happen that the
local people were working as blue collar workers while the white collar
employees were from external resources. Hence educational and training standard
were the most urgent factor. (SS)
Business News - January 18,2013
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