Wednesday, 3 July 2013

INVESTORS DEMAND BETTERMENT OF INFRASTRUCTURE



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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