Mar 24 00:56

About 500 regional regulations found to be obstructing investment

Jakarta (Antara News) - Some 31 percent or about 500 of regulations issued by regional administrations in Indonesia have been found to obstruct investment flows and to cause legal uncertainty and must therefore be scrapped, a government official dealing with regional autonomy affairs said.

"Based on the result of a recent analysis, we have recommended the revocation of 31 percent of 1,600 regulations issued by regional administrations because they , in principle and substance, obstruct investment flows to the regions," Agung Pambudhi, executive director of the Committee Monitoring the Implementation of Regional Autonomy (KPPOD), said here Thursday.

In the meantime, Sofjan Wanandi, chairman of the Indonesian Businessmen`s Association (Apindo), said since the regions were given autonomous powers, many of their administrations had been trying to create soures of revenue by issuing regulations of their own.

He said the central government had difficulty controling the issuance of regional regulations hampering investment. .

Most of thee obstructive regulations had been made by the administrations of regions located far from Java island and relatively poor in revenue, he added.

Sofjan said the regional autonomy given by the central government to them was intended , among other things, to delegate its powers to the regions for the sake of their peoples` welfare and enhance their economies.

"Before investors come, they are provided figures and good regional condition. But when they want to invest their capital, the regions impose various levies on them," he said.

The businessman said he also found many administrations had yet to apply one stop services.

"Facility for lisence and transparent and simple regulations are needed to lure investors. Moreover the administrtaions should implement regulations in line with the central government policy to create healthy investment climate," he said.(*)
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