Jakarta, Feb 12 (Antara) - After announcing its ninth economic policy package on electricity, cattle imports, and logistics deregulation last month, the government launched the tenth package on the revision of the Negative Investment List (DNI) on Thursday.
Micro, small and medium-scale enterprises (SMEs) and cooperatives have proven their resilience in facing economic crises and have become the pillars of the nation's economy.
Hence, the government has launched the tenth economic policy package aimed at boosting investment and promoting SMEs as well as cooperatives.
Through the tenth economic package, the government has revised the DNI and has offered more areas of business for SMEs and cooperatives.
The government has increased the number of reserved business sectors for SMEs and cooperatives by 19 additional business sectors. The new arrangement has been made following the revision of Presidential Decree (Perpres) No. 39 of 2014 on the List of Business Fields Closed and Business Fields Open with Conditions to Investment in the investment sector (DNI).
"The 19 sectors are covered in the activities of business services and construction that use simple or medium technology, with a value of Rp10 billion," Coordinating Minister for Economic Affairs Darmin Nasution stated at a press conference on February 11.
"In the previous DNI, around 55 percent of foreign shares were required in business areas such as pre-design and consulting services, architectural design services, and administrative services," the minister explained.
Besides this, the government has expanded the value of 39 reserved businesses in the sector of SMEs and cooperatives from Rp1 billion to Rp50 billion.
The activities included the type of construction service business, such as construction work for commercial buildings, health facilities, and others.
The government has simplified the business field as part of its efforts to expand the business activities of SMEs and cooperatives. For instance, the 19 business services/construction were merged into a single type of business, the minister remarked.
. "Therefore, the reserved business sectors for SMEs and cooperatives have been simplified from 139 business sectors to 92," the minister stated.
With regard to the partnership aimed at encouraging domestic investment companies and foreign capital investment firms to cooperate with SMEs and cooperatives, the previously reserved 48 business sectors were increased to 110.
The business sectors included a plantation seeding business, with an area of 25 hectares, retails via mail order, and the internet.
The SMEs and cooperatives would be able to invest in both, the areas of business that were not regulated in the DNI, and in business sectors open with conditions.
Cabinet Secretary Pramono Anung had earlier remarked after a cabinet plenary session that although the package only concerned the DNI, the policy covered a large area as it was related to 16 ministries and institutions.
He remarked that President Joko Widodo (Jokowi) had issued several directives on the revision of the DNI, saying that any change made should remain in order to provide protection to small-scale businesses (UKM).
"Projects worth Rp10 billion or less than that are not included (in the DNI)," Pramono stated at a joint press conference on February 10 with National Development Planning Minister/Chairman of the National Development Planning Agency (Bappenas) Sofyan Djalil.
The cabinet secretary said the president had urged that the revision of the DNI should cover the prevention of oligarchy and cartel practices.
"Jokowi urged that matters with regard to the interest of the people should be made easy. The efforts to anticipate global competition should also be made, so that Indonesia will be ready to face it," stated Pramono.
According to the cabinet secretary, the head of state had wanted the revision of the DNI to be directed to create more jobs and increase the competitive edge of national companies.
He quoted the president as saying that the revision of the DNI was not an effort to liberalize the economy but to modernize it, so that Indonesia would have strong competitiveness.
Pramono said that besides discussing the revision of the DNI, the cabinet plenary session also touched on policies and priorities to be considered in the government's work plan (RKP) in 2017 and the acceleration of the 2015-2019 National Mid-Term Development Plan's integration with the Regional Spatial Planning (RTRW).
Meanwhile, Chief Economic Minister Darmin Nasution remarked that the president had called for the revision of Perpres No. 39 of 2014 on the DNI, so that improvements on it could be carried out immediately.
He noted that there were 754 commodities, which would be regulated as part of the revision of the regulation, thus it could not be completed all at once.
"We will work soon for that, and we hope it would bring good news to domestic and international businesses. Of course, the Capital Investment Coordinating Board (BKPM) will take on the leading role in this case as the DNI is a regulation on investment," Darmin added. ***3***(A014/INE/o001)EDITED BY INE(T.A014/A/BESSR/O. Tamindael) 12-02-2016 12:36: |
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