Investors’ Warnings to Government
Thursday, 11 January, 2007 | 15:18 WIB

TEMPO Interactive, Jakarta: Several investors and would-be of investors in special economic zones (SEZs) have said they feel uneasy since the government's promised to grant various investment incentives are yet to materialize.

“Many investors there consider that SEZs here are inefficient compared to offers from Vietnam and Malaysia,” said M.S.Hidayat, Head of the Indonesian Chamber of Commerce and Industry (Kadin), yesterday (01/10) in Jakarta.

In fact, several Singaporean investors have stated that they will leave for Vietnam and Johor, Malaysia.

According to him, the investors' warnings were serious so the government must soon provide concrete answer.

In addition, six months after the SEZs of Batam, Bintan and Karimun were established, there were still no improvements in sight.

“I sent a letter to the government two days ago regarding this matter,” he said.

Other issues that the investors were focusing on, Hidayat added, included the dualism that exists in the governance system of Batam Special Economic Region between Batam Authoritative Body and Batam City government, and therefore the question of which party had the greater authority.

He said he viewed that such an issue must be solved if Indonesia intends to attract investors using SEZ schemes as Malaysia, China and Vietnam have already done.

Other crucial issues that the government must solve soon are the acceleration of various deregulation matters as regards levies, workers and salary system.

“Remember, investment has no nationality,” said Hidayat.

Agus Supriyanto