HOUSE WANTS REVIEW OF POLICY ON NEGATIVE INVESTMENT LIST

by Andi Abdussalam

Jakarta, Nov 22 (Antara) - The current government of President Joko Widodo aims to develop and protect micro-, small-, and medium-scale enterprises (UMKM), for which there should be no policy that could harm the interests of small businesses.          Hence, the House of Representatives (DPR) has suggested that the government review its policy that allows foreign firms to invest in certain areas, so far, designed for small businesses in the Negative Investment List (DNI).          The government recently announced its plan to issue a policy to relax the 2016 DNI that will be carried out through revision of Presidential Regulation (Perpres) Number 44 of 2017 concerning list of business fields closed to and business fields that are open with conditions to investment.          In Presidential Regulation Number 44 of 2017, which regulates the 2016 DNI, 25 business sectors in question have varying requirements for foreign capital ownership, ranging from 49 percent to 95 percent.          With the issuance of the XVI Economic Policy Package and revision of Perpres Number 44 of 2017, the government has decided to allow foreign investors to have full ownership in 25 business sectors in the DNI.

SOME AREAS REMOVED FROM NEGATIVE LIST TO BOOST INVESTMENT

by Andi Abdussalam

Jakarta, Nov 20 (Antara) - The government issued an economic policy package on Friday, in which a number of business areas were removed from the Negative Investment List (DNI) to boost investment and to increase the number of industries.          The DNI is a list of business areas closed to foreign investment and new investment. Hence, there is concern that the exclusion from the DNI of certain business areas would sacrifice the interest of micro-, small-, and medium-scale businesses (UMKM).          Coordinating Minister for Economy, Darmin Nasution, denies allegation that the government is allowing foreign investment to operate in areas appropriately designed for UMKM businesses and cooperatives.          The protest and allegation came on wrong perception over four business areas which are appropriated for UMKM and cooperatives under the DNI of 2016.          The four business areas include tuber peeling and cleaning industry; cloth printing industry; knitting industry, particularly embroidery; and internet service outlets.         "It is impossible that foreign investment would operate in tuber peeling and cleaning industry and internet service outlets as a foreign investment company is required to start businesses with a capital of at least Rp10 billion. Those (businesses) are not Rp10-billion class venture," Nasution noted.

INVESTMENT IN DIGITAL SECTOR PROMISING

By Andi Abdussalam

Jakarta, March 29 (Antara) - The people's life in the future will lie in the digital world so that those who are still stuck in the conventional system will be left behind.          This prompts people to look forward to the development of digital technology, boosting investment in the digital sector and providing momentum to grow.          Hence, the amount of investment in the digital sector in the country is expected to increase significantly this year, in line with the improvement of the ease of doing business.          Foreign investment coming into Indonesia's digital sector in 2017 reached US$4.7 billion. This is evidenced by the existence of four startup companies with the unicorn status in Southeast Asia based in Indonesia.         The term unicorn is given to start-up companies with valuations of $1 billion.         Previously, a digital technology company from Malaysia, Toga Limited expressed interest to invest in the startup company managed by Indonesia Stock Exchange (IDX) Incubator with budgeted funds of $10-15 million.

GOVERNMENT OPTIMISTIC OF ACHIEVING INVESTMENT TARGET

by Andi Abdussalam

Jakarta, July 27 (Antara) - The government is optimistic of achieving its investment target of Rp678.8 trillion set in the state budget this year.          The government's confidence in achieving the target is based on its investment performance in the first semester of 2017, which had reached Rp336.7 trillion. This is partly due to the fact that Indonesia has been awarded an investment grade rating by international rating agencies.          Head of the Capital Investment Coordinating Board Thomas Trikasih Lembong stated that the investment grade awarded to Indonesia must be followed by efforts to improve the business climate.          Lembong, popularly known as Tom, informed the press on Wednesday (July 26) that President Joko Widodo (Jokowi) had expressed hope that the investment grade rating awarded by several international rating agencies to Indonesia would trigger the inflow of foreign capital investment in the country.          In May, Standard & Poor's upgraded Indonesia's sovereign credit rating to investment grade BBB-, a response to Indonesia's strong fiscal management. The agency's move followed similar upgrades announced by Fitch in late 2011 and Moody's in early 2012.          After receiving the investment grade rating, Indonesia is expected to attract more foreign investment. President Jokowi also expressed hope that foreign capital would reach up to US$10 billion.

INDONESIA'S INDUSTRIAL ZONES AWAIT JAPANESE INVESTMENT

By Andi Abdussalam

Jakarta, July 10 (Antara) - Indonesia has continued to develop special industrial zones (KEKs) where it provides investment facilities to investors, including those coming from overseas.          Several regions in the country have proposed to the government to open KEKs to accelerate their economic development. Currently, the government has approved at least 11 KEKs, with a total investment of Rp221 trillion.          In order to further boost investment in the country's KEKs, Indonesia is promoting the potential of its economic zones abroad to attract foreign investment.      After his trip to South Korea, Minister of Industry Airlangga Hartarto visited Japan to seek additional investment for the industrial sector in Indonesia.          "Yesterday, we met Jetro (Japan External Trade Organization) President as well as the board of directors of Sojitz Corporation. We invite them to continue to increase their investment in Indonesia," Hartarto said a written statement in Jakarta on Saturday (July 8).          Several industrial areas in Indonesia are open to receiving foreign investment, including from Japan.          Indonesia expects industries from Japan, such as those engaged in metal mineral processing, power generation, coal gasification, petrochemicals, and glass, to invest in the country's industrial sites that have been readied.

GOVERNMENT DIRECTING INVESTORS TO INDUSTRIAL ESTATES OUTSIDE JAVA

by Andi Abdussalam

Jakarta, July 7 (Antara) - Indonesia is directing foreign investors to invest in industrial areas outside Java in an effort to promote equality of economic development across the country.          Hence, in his tour of South Korea this week, Industry Minister Airlangga Hartarto sought to attract South Korean investors to expand their business to industrial areas outside Java, such as the Sei Mangkei Economic Zone in North Sumatra and the Morowali Industrial Park in Central Sulawesi.          "We are focusing on accelerating the development of industrial estates outside Java, as an effort to carry out equitable national economic development," said Minister of Industry Airlangga Hartarto in a written statement in Jakarta on Wednesday.          Moreover, the industrial area is included in the list of national strategic projects whose development will be accorded priority.          Airlangga made the remarks when as a speaker addressing the 8th Asian Leadership Conference with the theme of  Invest in Indonesia: Nation of Abundant Natural and Human Resources, in Seoul, South Korea.          The development of industrial estates especially outside Java has a significant role to accelerate the ideals of the government to realize equitable development in Indonesia.

GOVERNMENT CONTINUES TO PUSH INVESTMENT

by Andi Abdussalam

Jakarta, April 29 (Antara) - Although the realization of investment in the country over the past two years has always overshot the set targets, the government believes there are still barriers hindering investment growth.         In order to boost growth, the government is making every effort to identify and remove barriers hampering business development and investment growth in various parts of the country.         Regulations still exist that are viewed as constraints to expansion of business and investment and are now being evaluated.      According to Thomas Trikasih Lembong, the head of the Capital Investment Coordinating Board, President Joko Widodo had announced that 23 ministerial regulations were considered to hinder investment and business.         Hence, the government is holding in-depth discussions on the possible revocation of the 23 ministerial regulations and several other regulations.         President Jokowi has also assigned 12 ministers to serve as liaison officers for investment matters. The president gave the special assignment in an effort to seek investment opportunities as well as to identify and solve problems that hinder investment in Indonesia. They should guard and ensure that the investment process is realized.

GOVERNMENT SHUTTING DOWN ILLEGAL INVESTMENT FIRMS

by Andi Abdussalam

Jakarta, March 27 (Antara) - The government, through its Investment-alert Task Force, has, since early this year, shut down the operations of 19 investment companies for not holding permits.          Comprising seven ministries/state institutions, the task force has been set up to handle bogus investment companies and to prevent investors from falling prey to their operations.          The task force members are the Financial Service Authority (OJK), Trade Ministry, Communication and Information Technology Ministry, and Cooperatives and Small Enterprises Ministry, Attorney General's Office, National Police, and Capital Investment Coordinating Board.          According to the OJK, on Sunday (March 26), the investment alert task force had yet again closed the operations of six companies this month after shutting down six illegal investment firms in January and another seven in February.          "Their operations have the potential to harm the interests of the public and are believed to be breaching the rules," the task force's chief, Tongam L. Tobing, who is also OJK's director for policy and investigation support affairs, said in a written statement in Jakarta on Sunday.

GOVERNMENT CONVINCED INVESTMENT CAN CONTRIBUTE TO ECONOMIC GROWTH

by Andi Abdussalam

Jakarta, Feb 8 (Antara) - The government believes that investment will gradually contribute to economic growth in the country in line with its efforts to improve the investment climate.          According to Coordinating Minister for Economic Affairs Darmin Nasution, it is always difficult to increase investment, but the government has something that it could offer.          In terms of regulations, Indonesia is now in a better position to open up opportunities for investors to invest in Indonesia.          The government has issued economic policy packages and optimized its services through the One-Stop Integrated Service.          "We continue to make improvements, so that our efficiency increases and helps to attract investors. This is a serious struggle (to increase investment), and we are still moving slowly (towards that target). We cannot make a successful jump all of a sudden. You cannot expect that investment would increase by six to seven percent; it is impossible," Nasution stated.          Earlier, the Central Bureau of Statistics had recorded that household consumption, standing at 5.02 percent in 2016, still constituted the biggest contributor to the economic growth.

TASK FORCE TO ERADICATE ILLEGAL INVESTMENT PRACTICES

By Andi Abdussalam

Jakarta, June 25 (Antara) - The government will set up investment-alert task forces in the region to overcome rampant illegal investment practices that offer fictitious business opportunities to the public in the region.       The regional investment-alert task force will follow the central government's Investment-alert Task Force formed in 2007 to tackle illegal investment practices.       Seven ministries/institutions are involved as members of the central government's Investment-alert Task Force. These are the Financial Service Authority (OJK), the Trade Ministry, the Communication and Informatics Ministry, and the Cooperatives and Small Enterprises Ministry, apart from the Attorney General, the National Police and the Capital Investment Coordinating Board (BKPM).       The main task of the regional investment-alert task force is to prevent and handle illegal investment practices that are rampant in many regions of the country.       Therefore, the government, through the Investment-alert Task Force of the seven ministries/institutions, will set up the same task forces in the region.

INDONESIA LAUNCHES INVESTMENT PROMOTIONS IN UNITED STATES

by Andi Abdussalam

Jakarta, May 24 (Antara) - In efforts to attract more investment abroad, the Indonesian Capital Investment Coordinating Board (BKPM) is launching a week-long promotional campaign in the United States and Canada from May 23 (May 24 in Indonesia) to 28.          During the investment promotional activities, the BKPM will comprehensively explain efforts made by the Indonesian government in improving the business climate and planned projects, such as deregulatory measures, reforms and various infrastructure projects, such as power plants, seaports, airports, railway tracks, toll roads, an irrigation system, dams and sea toll lanes.          During a meeting with the World Bank on Monday in Washington, BKPM Chief, Franky Sibarani explained the progress of Indonesian economic development and infrastructure as the main driver of economic growth in Indonesia.          "We have presented all the deregulatory measures made with regards to 10 main indicators (of ease of doing business/EODB)," he stated.          The Indonesian government, he said, has decided to carry out equitable development across the country. As part of this, infrastructure development is the biggest ever program in the history of the country.

INDONESIA EMERGING AS ATTRACTIVE DESTINATION FOR FOREIGN INVESTORS

By Andi Abdussalam

Jakarta, May 6 (Antara) - The government's efforts to introduce a series of economic policy packages since September last year and intensive investment promotions abroad have increased foreign investors' interest and made Indonesia the second-best investment destination.          "This January, Indonesia emerged as the second most preferred investment destination after China," Oikos Mando Panjaitan, manager of the Department of Communications of Bank of Indonesia, stated on Monday.          Indonesia has, since last September, launched 12 tranches of its economic policy package aimed at streamlining investment licensing procedures, creating ease of doing business, and attracting more foreign investment into Indonesia.          Besides this, the Capital Investment Coordinating Board (BKPM) has also been conducting intensive investment promotions in various countries in Asia, Europe, America, and Australia.          Last month, President Joko Widodo (Jokowi) undertook a tour of several European countries, which comprised the Netherlands, Britain, Germany, and Belgium, to increase investment and strengthen trade ties.

INDONESIA HOPES FOR MORE GERMAN INVESTMENT

by Andi Abdussalam

Jakarta, April 19 (Antara) - German investment in Indonesia has remained miniscule over the past five years, accounting for only US$552 million, about one percent of its total investment overseas.          However, the visit of Indonesian President Joko Widodo (Jokowi) to Berlin on Monday is expected to open new flow of German investment to Indonesia.          During the president's visit to Berlin, German and Indonesian businesses concluded a number of business agreements, including an agreement to invest in the smelter sector, worth US$800 million.          The Indonesian Chamber of Commerce and Industry (Kadin) had earlier predicted that the visit of the President will mark a new phase in German investment coming to Indonesia.          Kadin General Chairman Rosan Perkasa Roeslani revealed that on the first day of the president's visit to Berlin, a business-to-business MoU worth US$875 million was to be signed between Indonesian and German businesses.

JAPANESE FOOD FIRMS HAVE GROWING INTEREST IN INDONESIA

BY Andi Abdussalam

Jakarta, March 12 (Antara) - Japan, the third largest foreign investor country in Indonesia, is showing interest in expanding their businesses in the food sector after seeing progressive developments of the Japanese society in Indonesia.         "I have received reports that several Japanese food companies are contemplating entering Indonesia after observing the spurt in the number of Japanese restaurants and grocery stores in the country. This means that they already have market segments to sell their products in Indonesia," Franky Sibarani, the head of the Capital Investment Coordinating Board (BKPM), noted in a press statement in Jakarta Wednesday (March 9).          There were 1,199 students enrolled in Japanese schools in Jakarta in 2014. The institution also recorded that at the national level, there were 16 thousand Japanese expatriates living in Indonesia of which 10 thousand were in Jakarta, according to data at the representative office of the Japan External Trade Organization (Jetro).          "Data on Japanese expatriates in Jakarta is the main factor that has led to new investment interest in Indonesia," he claimed.           Companies from Japan were so far mostly doing business in the electronics, automotive, and components sectors, in addition to garment products, Saribua Siahaan, the BKPM representative for investment promotion (IIPC) stated in Tokyo.

RI INTRODUCES DNI REVISION IN US TO LURE INVESTMENT

by Andi Abdussalam

Jakarta, Feb 18 (Antara) ¿ Indonesia has opened 35 business sectors to US investors that were earlier found on the Negative Investment List (DNI), as announced during President Joko Widodo's  (Jokowi's) tour of the United States this week.          The government has revised the DNI and included it in the tenth economic policy package announced on Thursday, February 11. With their removal from the DNI, the 35 economic sectors are now open to 100 percent foreign investment.          Indonesian Trade Minister Thomas Lembong told US investors in San Francisco on Tuesday that the revision of the DNI opens significant investment opportunities for US companies in Indonesia.        These sectors included crumb rubber, cold storage, tourism businesses such as restaurants, cocktail lounges, cafés, recreation centers, arts, and entertainment, sports centers, and the film industry.          Thomas also used the forum to explain improvements in the country's export and import trade policies.          Also, during an Economic Ministers' Roundtable meeting in San Francisco on Tuesday with 16 companies, the government elaborated on the DNI and investment opportunities. Additionally, the government explained the steps it has taken to improve its trade and investment climate.

INVESTMENT BOARD EXPECTED TO EXCEED TARGET

by Andi Abdussalam

Jakarta, Dec 17 (Antara) - The realization of investment in Indonesia in 2015 is expected to reach Rp535 trillion-Rp540 trillion, up 16.6 percent from that in 2014, surpassing the Capital Investment Coordinating Board's (BKPM's) target set at Rp519.5 trillion.         The forecast is based on the trend of realized investment, and it has been growing all through the year, BKPM Chief Franky Sibarani stated early this month (Dec. 1).        "This means that this year, the investment level is 16.6 percent higher than that in 2014," Sibarani noted.         BKPM deputy for capital service Lestari Indah remarked at the Bogor Economic Summit in Jakarta on Wednesday (Dec. 16) that the overall investment realization from January to September this year rose by 16.6 percent to reach Rp400 trillion. The value excluded the investment in the financial sector and the upstream oil and gas business.          The BKPM noted that the investment realization worth Rp400 trillion in the January-September 2015 period accounted for 77 percent of the investment target set for this year at Rp519.5 trillion.

BKPM EXPECTS NEW INVESTMENTS FROM SOUTH KOREA, JAPAN

By Andi Abdussalam

Jakarta, Oct 10 (Antara) - The Indonesian Capital Investment Coordinating Board (BKPM) is vying for new investments from Japan's Okayama Prefecture in the automotive component factory and from South Korea in various sectors.         The South Korean investments being expected are estimated to be worth US$600 million.         A major automotive component company, which so far supplied components for Mitsubishi cars, is interested in developing an auto component factory in Indonesia.          On investment from South Korea, BKPM Chairman Franky Sibarani said on Friday his board has identified that South Korea is interested in making a new investment in Indonesia, worth US$600 million.         The BKPM said various firms have evinced an interest to invest in different business sectors, such as a ferronickel smelter, valued at US$300 million, biomass worth US$100 million, palm oil refineries and its derivatives, and the animal food industry and fruit processing, with a combined value of US$200 million.          Sibarani said the South Korean interest was identified through an investment and business seminar on Indonesia, organized by the Indonesian Investment Promotion Center (IIPC) and the Asean Korean Center, on Tuesday.

INDONESIA SEEKS MORE INVESTMENT FROM SOUTH KOREA

By Andi Abdussalam

Jakarta, Aug 29 (Antara) - Indonesian Vice President Jusuf Kalla, who is on a five day visit until Sunday to attend a peace conference in Seoul, has promoted Indonesian businesses to attract more investment from South Korea.         Kalla, who attended the Peace Summit of the Universal Peace Federation on Friday, also held meetings with the South Korean prime minister, trade and industry minister and conglomerates.        "Indonesia and South Korea are friendly countries and have strong relations," Kalla said in his address during a dinner party with South Korean conglomerates at Conrad Hotel, Seoul, Friday night.         During his speech, Kalla introduced additional investment potentials to South Korea, which is one of the five largest investor countries in Indonesia.         He noted that South Korea and Indonesia are both 70 years old, but South Korea has moved ahead in becoming an advanced nation.

RUPIAH DEPRECIATION HAS NOT HURT INVESTMENT FLOW

By Andi Abdussalam

Jakarta, Aug 26 (Antara) - The recent depreciation of Indonesia's rupiah currency against the U.S. dollar has so far not hampered the flow of investment in the country.          Currently pegged at Rp12,500 against the U.S. dollar in the revised 2015 state budget, the rupiah has continued to weaken since early this year from about Rp12,580 per U.S. dollar to Rp14,000 per U.S. dollar. Yet the deprecation has not significantly affected investment in the country.          "We do not see yet the impact of the rupiah's depreciation on investment. However, it affects the real sector as demand is likely to drop", Franky Sibarani, the head of the Capital Investment Coordinating Board (BKPM), said in Jakarta on Tuesday.          Since the first semester of this year, the rupiah's depreciation has had no direct impact on the flow of investment. Investors are even trying to take advantage of the rupiah weakening by improving performance and their exports. That is a positive aspect of the rupiah depreciation.          "Data shows that during the first semester of the year, realization of investment rose by 16.6 percent. The realization of investment in the steel industry jumped 100 percent in the first semester," Sibarani pointed out.          BKPM has set an investment target of Rp519.5 trillion in 2015 and Rp594.8trillion in 2016, or up by 14.5 percent.

FOREIGN INVESTMENT SET AT RP386.4 TLN TO BOOST EXPORTS

By Andi Abdussalam

Jakarta, Aug 1809 (Antara) - The government has set a foreign investment target at Rp386.4 trillion in 2016, or about 53.9 percent of the total investment plan of Rp594.8 trillion in efforts to boost exports.         Indonesia's export performance, which this year has slumped 10.23 percent compared with 2014, needs to be boosted by attracting more foreign investment.         "In order to help export-based industries, we need foreign investment. Of course this will need coordination among the Investment Coordinating Board (BKPM), the Industry Ministry and the Trade Ministry," Trade Minister Thomas Lembong said at a press conference on Wednesday.         The minister said he had held talks with the BKPM regarding investment in sectors that could support export-based industries.         Based on the Trade Ministry's data, the industrial sectors that can be developed because they cater to demand from overseas, include automotive, electronics, timber-based products, textile and textile products, metal and chemical products.         For this the BKPM has projected a bigger foreign investment. BKPM Chief Franky Sibarani said that of the Rp594.8 trillion target in 2016, about Rp386.4 trillion is expected to come from foreign investment or about 53.9 percent and Rp208.4 trillion from domestic investment.