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Wooing Investors

Government Promises Dramatic New Steps to Lure Investors to Indonesia.


Bali News:
Click Image to Enlarge

(4/22/2002)

Acknowledging a lack of interest by overseas businesses in investing in Indonesia and the currently non-conducive environment in comparison to other countries in the region, Indonesia's Chief of the Investment Coordination Board (BKPM), Theo F. Tomion, recently signaled aggressive policy changes to soon be announced by the Government designed to make the country more attractive to foreign investors.

Among the measures now under serious consideration include:

+ Eliminating all discriminative policies between foreign and domestic investors according "equal treatment" for both domestic (PMDN) and foreign (PMA) capitalists.

+ The elimination of local and regional regulations at odds with central government decrees and seen as inimical to the investment process.

+ Enhanced transparency, better coordination with regional governments, and "one-roof" service for new investors needing numerous permits to commence an investment project.

+ Tax Holiday incentives for new investors.

+ Elimination of the current negative investment list opening areas previously closed to foreign investors such as broadcasting, publishing and hospitals, among others.


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