INVESTORS ADVISED TO SEEK OPPORTUNITIES IN EASTERN REGIONS

Jakarta, 17 Dzulqa’dah 1435/12 September 2014 (MINA) –In a bid to help boost development in eastern Indonesia, business groups in the country need to take an active role in encouraging investors to move to eastern parts of the country, a senior official has said.

Sri Agustina, the Trade Ministry’s director general for domestic trade, said on Thursday business associations could show investors areas in the country which were in dire need of development.

“Business associations, under the coordination of Kadin, should not only be able to attract investors to Java or other western parts of Indonesia. They should also nudge investors toward eastern Indonesia,” Sri said, referring to the Indonesian Chamber of Commerce and Industry (Kadin), The Jakarta Post quoted by Mi’raj Islamic News Agency (MINA) as reporting.

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Due to a lack of development in eastern parts of the country, Sri said, investments would be greatly welcomed particularly if they drove locally based production.

The government has plans to provide special incentives for investors who invest in the eastern part of Indonesia in a bid to accelerate economic development.

According to data from the Industry Ministry, Java remains the center of industrial development in the country, with industrial investment on the island accounting for 28 percent of the nation’s total investment.

The ministry has also forecast that new foreign investments in all industrial sectors will reach Rp 131.4 trillion (US$11.08 billion) next year.

Aside from promoting development in eastern Indonesia, Sri said business associations also needed to take part in providing input to any discussions prior to the issuance of government policies.

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“Input from business associations will make implementation [of policies] a lot easier,” she said, adding that without this input the business community usually viewed government policies as burdensome.

Citing an example, Sri said the ministry had initiated focus-group discussions with the chamber and several of its member associations on the design of electronic-based trading. “We didn’t just draft the policy, we also discussed it with Kadin and the associations so that we could ensure smooth implementation,” she added.

According to her, only around 75,000 out of 50 million small and medium enterprises (SMEs) have taken advantage of the online marketing and distribution channels.

“Promotion is required so our products can be recognized beyond the domestic market,” she said.

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Setio Hartono, the Industry Ministry’s secretary director general for manufacture-based industries, said business associations were involved in the planning of policy design.

“Whenever there’s the drafting of policies, we collaborate with associations. They are the bridge between the government and businesses,” Setio said on Thursday.

While Kadin focused on the coordination, Setio continued, the ministry would provide a forum to accommodate the demands of producers that normally include exemption of import duties or any other burdens the government can alleviate.

“It’s up to Kadin to ensure effective communication, but we’re definitely very close to them,” he added.

There are currently around 200 associations registered with Kadin, but there are about 800 more that are not registered.(T/P009/P3)

Mi’raj Islamic News Agency (MINA)