From Tempo http://www.tempointeractive.com/hg/ekbis/2006/07/21/brk,20060721-80467,uk.html Incentives For Investment Excluded From Bill
Friday, 21 July, 2006 | 16:41 WIBTempo Interactive
, Jakarta: Boediono, the Minister for the Economy, said that incentives for investment will not be attached to the Investment Bill which is now being prepared.
The granting of facilities, he said, and incentives for investment must be flexible and be adjusted to both the situation in progress and investment opportunity. “It's better for the provision to be attached to the regulation under the law (governmental regulation),” Boediono said during a meeting with the Commission for Industry and Trade at the House of Representatives (DPR) on Wednesday of this week in Jakarta.
Boediono explained that incentives that are still being prepared are tax holidays and investment credit. “These are new incentives,” he said.
In addition to tax incentives, he said, there are others in progress. It is only that the incentives will be regulated in the sectoral and governmental regulations.
Mari Elka Pangestu, the Minister of Trade, has added that the Incentives Bill will act as the main legal umbrella in terms of investment. It is expected that this regulation may provide stronger certainty in investing.
Mari acknowledged that the new regulation will not answer every technical matter concerning investment. “The unanswerable matters within the law will be stipulated in another regulation,” he said.
However, Boediono denied the statement that incentives regulations which take the form of government regulations will postpone the enactment of the Investment Bill.”Right now, although the law is not enacted yet, investment is still going on,” he said.
Boediono also denied an accusation that the new bill is not on the side of the people and will only exploit Indonesia's resources. The main objective of the regulation is to attract investors in order to open a wide opportunity of employment.
He acknowledged that investment in Indonesia remains low. In fact, up until 2004, investment was rated in the negative. “This means divestment,” he said. “It resulted in many unemployed. ”