Jakarta, Dec 22 (ANTARA) - Amid optimism among government officials
about future foreign investments, the Indonesian business community has
expressed concern about legal uncertainties and labor rallies, which
they say could discourage increased foreign investments.
Bank Indonesia officials (BI/the Indonesian central bank) have said
foreign investment in the run-up to the end of 2012 is increasing.
Further, Bank Indonesia predicted that net foreign investments during
the fourth quarter of this year would reach US$7 billion, though foreign
investment in the first three quarters had totaled only US$14 billion.
"This shows that the net inflows of foreign investment are increasing
at the end of the year. So, the total net investment inflows up to the
end of 2012 are expected to reach US$21 billion, both in direct
investment and portfolio investments," Hendar, the executive director
for monetary management affairs of Bank Indonesia, said on Thursday.
However, business leaders said that the flow of foreign investment to
Indonesia could be slowed due to several factors, particularly legal
uncertainties and widespread labor demonstrations.
"Legal uncertainties in Indonesia cause investors to be concerned.
Investment that would flow into the country could be delayed, Sofyan
Wanandi, the chairman of the Indonesian Businesses Association
(Apindo)," said on Friday.
Sofyan Wanandi cited, as an example, the dissolution of the Upstream
Oil and Gas Regulator (BP Migas) by the Constitutional Court (MK) on
November 12, 2012. He said that the dissolution of BP Migas was an
example of the legal uncertainties in the business sector.
"Legal uncertainties scare investors who wish to invest their money," asserted Sofyan.
On November 12 the Constitutional Court dissolved BP Migas, after
reviewing Law No. 22/2001 on oil and gas on the grounds that it ran
counter to the 1945 Constitution and had no legal binding. The court
ruled that articles governing the tasks and functions of BP Migas under
the law 'are against the Constitution and therefore not legally
binding.'
The MK said that BP Migas had diminished the state's
control over the country's natural resources, particularly oil and
gas. BP Migas should have only supervised oil and gas business
activities, not become directly involved in oil and gas management. Oil
and gas management should be carried out by a state-owned firm.
Besides legal uncertainties, continuing demonstrations by workers
demanding better wages are also a factor that might discourage foreign
investors from coming to Indonesia. Sofyan said demonstrations by
workers often become wild, which scares investors.
Chairman of the Indonesian Chamber of Commerce and Industry (Kadin)
Suryo Bambang Sulisto said labor rallies, of late, tended to whirl out
of control and harm the investment climate in the country.
"Workers are increasingly anarchic in staging demonstrations, and this
disturbs the investment climate in Indonesia," noted Suryo, during a
press conference entitled Economic Outlook 2013.
He said that while it was legal for workers to stage protests and
rallies to voice their hopes for the future, yet they should not spin
out of control, as this harms the interests of all sides.
"The government, therefore, needs to provide protection for all
companies. Protection is quite important for them," the Kadin chairman
said.
According to Vice President Boediono, firm actions should be taken
against workers involved in anarchy during demonstrations. He said
while labor demonstrations are allowed, actions must be taken against
anarchism.
"The law must be enforced against excesses, such as intimidation," he
said, admitting that investors have been concerned over the
demonstrations.
He added that the government remained committed
to improving investment conditions in the country by, among other
actions, providing legal certainty and better infrastructure.
This year, workers rallies have shown an increasing trend, in many
parts of the country, to voice demands for wage increases.
Rumors have it that workers rallies and the government's step to raise
regional minimum wages has discouraged investors, including those who
were considering relocating their factories.
The rumors, however, were refuted by the Capital Investment Coordinating Board (BKPM).
"There are no companies under the BKPM which have left Indonesia due to
labor demonstrations of late. Foreign firms have paid salaries higher
than the minimum regional provincial wage (UMP). They are only nervous
about demonstrators conducting raids at firms and forcing other workers
to join their rallies," the BKPM Chief said.
He noted that foreign companies were not affected by the rallies
themselves. They only affected small companies, usually local or
domestic companies.
"So, the rallies, themselves, pose no problem as long as they are held
without violating the law," Chatib said at the State Palace recently.
The same view was also voiced by Chief Economic Minister Hatta Rajasa.
He said that no foreign investors had plans to leave the country
following recent labor demonstrations.
"I have checked with the head of BKPM (the Investment Coordinating
Board) and (found) no investors have said such a thing," he said at a
dialog on economic nationalism here on Saturday.
Hatta added that the workers' demand for an average of Rp2 million per
month across the country was reasonable and must be met.
The regional government of Jakarta has raised its regional minimum wage
from Rp1.5 million to Rp2.2 million per month beginning in 2013.
This, however, sparked outcries by small industries in Jakarta and its buffer zone areas.
"I believe employers should understand it," he said.
With regard to companies that could not meet a raise in wages, he said
he would ask the manpower minister to issue a regulation addressing this
problem.
The chief economic minister added that the state is ready to reduce its
revenues from corporate taxes, if necessary, to allow companies to
continue operating their businesses.
(T.A014/A/INE/B003)
(T.A014/A/KR-BSR/B003) 22-12-2012 14:12 |
Tidak ada komentar:
Posting Komentar