Infrastructure More Interesting Than Fiscal Incentives
Thursday, 06 July, 2006 | 17:41 WIBTempo Interactive
, Jakarta: Entrepreneur groups consider that improvement to infrastructures is far more interesting to investors than the granting of fiscal incentives.
“At the very least, the government should first improve infrastructure because this will significantly decrease production costs,” Gunadi Sindhuwinata, Managing Director of PT Indomobil Sukses International, told Tempo in Jakarta.
According to him, complete infrastructure will make it easier for entrepreneurs in scheduling their supply of raw materials as well as marketing.
In addition, it will decrease their transportation costs.
Hadi Surjadipraja, Chairman of the Car and Motorcycle Equipment Association, said he considered that road infrastructures must be repaired in order to stimulate investors to invest in Indonesia.
“Investors will be more interested to invest in a region with complete infrastructure,” he said.
Faisal Basri, an economist at Universitas Indonesia, is of the same opinion.
According to him, the government must prepare and fix the infrastructure.
Should the government fail in this respect, then manufacturers must build their own and be granted some tax holidays.
However, according to him, the granting of tax holidays need not be explicitly attached to the Draft Bill of Capital Investment, which is now being discussed by the DPR.