RI to announce policies to improve investment

JAKARTA (AP): Indonesia will announce new policies to improve investment in the country this week, Coordinating Minister for the Economy Boediono said Wednesday.

The policies will be unveiled in one to two days, he said, without giving further details.

Investors have been increasingly reluctant to invest in Indonesia since former President Soeharto's fall in 1998 and the loss of certainty in investment structures. Investors have been particularly reluctant to put money into oil and gas, mining andinfrastructure projects.

Indonesia Trade Minister Mari Pangestu said Monday in Kuala Lumpur, Malaysia, that current regulations have been in place since 1994 and are becoming inconsistent with the country's needs. New policies and laws will spell out clearly which sectorsare open to foreign investors and what are the conditions attached, she said.

Indonesia's House of Representatives recently pass an investment law allowing the government to give incentives to local and foreign investors. Implementation of the law, however, depends on more specific government regulations.

Mari also said Monday that Indonesia will soon unveil new measures to boost liquidity in the stock market and that Indonesia is working with Malaysia to allow dual listings on each other's exchanges.

Indonesia is finalizing the capital market development package, which will include tax incentives as well as new supervisory laws, especially on money laundering, she said at thebusiness conference in Kuala Lumpur. (**)
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