Indonesia Ahead of Singapore in Investment
VIVAnews - In 2008, investment in Indonesia recorded the highest value, leaving Singapore behind. US$ 12 billion was invested in Singapore compared to Indonesia who boasted US$ 17 billion in investment.
"[Indonesia] achieves the highest investment in Southeast Asia," said Head of Capital Investment Coordinating Board (BKPM) M. Luthfi on Monday, Jan 12.
Luthfi also said that fund stimulation toward the real sector would somewhat improve investment in 2009. "This is what i'm thinking. There are three main sectors: energy, infrastructure and manufacture, possibly concerning with food and non-food. Given the facilities, we may achieve a double-digit growth although it won't be as it was in 2008," he said. In 2008, investment grew by 15.5 percent compared to 2007.
This year, he projected that investment will improve by 10 to 11 percent. Incentives, fund stimulations and facilities that the government provide would boost the investment value.
However, Luthfi acknowledged that there are obstacles in domestic investment. Therefore, he expected that Law on Special Economic Zone can be a way out for existing provisions, which are deemed as hampering investment.
Moreover, Deputy Coordinating Minister for the Economy on Infrastructure and Regional Development, Bambang Soesantono, said that there are 13 regions who what proposed to be Special Economic Regions. Nonetheless, not all of them meet the condition.
"The conditions vary. We'd like to see how far they have met the requirements. Meeting the conditions needs time. Therefore, they are waiting for the Law [on Special Economic Zone] to be issued" he said.
The requirements attached in the Law, he said, are concerned with layout, environmental impact assessment and consensus between regency and provincial governments as well as the Regional House of Representatives (DPRD).
Soesantono said that the existence of Special Economic Zone will not remove Free Trade Zone. Investors may enter those regions. "It depends on the investors' ability. They should remain either in the industrial zone or export-processing zone," he said.
As for Special Economic Zone, Soesantono said, non-fiscal facilities should be highlighted. A policy in industrial or export processing zone is permanently applied. Meanwhile, a policy in Special Economic Zone can be reviewed anytime.
Translated by: Bonardo Maulana Wahono
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