While being designed to increase investment, the investment policy
adopted by the government was also meant to solve various problems which called
for greater effort. Unless immediately exercised, it was feared that investors
would turn their attention to other countries where the climate was more
conducive to investment and ensured better security. A sound government’s
policy was needed to crack various problems and motivate investors to invest in
Indonesia.
Chairman of the Association of Indonesian Real Estate, Sanny Iskandar
stated in Jakarta on Tuesday [28/5] that regional autonomy could be benefited
by the governments to compete against each other to drum up more investors in
their respective regions. Such a condition could be attained if the policy
adopted by the local governments was investor-hospitable. The provincial
governments must assess and decide the industry in their region. As initial
step the provincial government must seek for big companies with whom to
collaborate by giving certain concessions.
By such measures it was expected that if the company succeeded they
would draw other investors in a chain engagement process. The successful
company would pose as magnet to other industrialists. According to Sanny, the
provincial governments could ask the management of harbors to collaborate in
building industrial estates well integrated with harbors.
Sanny stated that provincial governments needed to build industrial
estates which were well linked to infra-structure like highways, harbors,
powerhouses, water resources, drainage system and telecommunication network.
Facilities for permit application procedures based on one-stop service system
and legal certainty were all the essential need for investment process.
Sanny saw that many companies complained about had business climate
which was not conducive to progress and there was no legal certainty because
the policy adopted by the local government was not synchronous with that of
central government. Many regions were too popularity oriented which scarified
investment climate. There were even governors of provincial heads who acted
like Mafia Godfathers: if they did not get protection money they would disturb
investors. This must not happen. “We urge provincial government to run
investment policy which was investor-friendly” Sanny remarked.
Meanwhile senior researcher at the institute for development of
economics and finance [INDEF], Aviliani, stated that legal certainty could not
be confided to the regions but it should be solved at national level with law
enforcement. When policies were put in effect without law enforcement,
provincial heads would acts as they please to change policies without
considering the consequences. Supposedly regions were not given too big portion
of power as they had no capability to make policies which were synchronous with
progressive efforts of the business world.
Supposedly the provincial heads as host collaborated with the businesspeople
to accelerate growth, enhance development and opening more employment
opportunities. According to Avilliani, there should be sound collaboration
between businesspeople and the provincial government. Investment climate should
be conducive to growth and there must be legal certainty so investors would
survive and contribute to regional development.
As government’s strategic partner, business players were playing active
roles in infra-structure development as proclaimed by President SBY through the
Indonesian Economic Development and Expansion Acceleration Program [MP3EI].
However Avilliani admitted there was a list of problems to be settled by the
regional government, among others to build infra-structure, open job
opportunities and set up uniform regulations in every region so business people
were not disadvantaged. (SS)
Business News - May 31, 2013
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