Economist warns govt against favoritism in drawing up DNI

Yoyakarta (Antara News) - University of Gajah Mada economist Dr Sri Adiningsih said the government should not show favoritims in selecting areas to be included in the Negative Investment List (DNI).

"If the criteria for areas to be included in the DNI have been formulated, the government should be consistent. There should be no favoritism by which certain sectors are purposely defined ambiguously so that they would still be open for certain groups or people," she said on Tuesday.

The DNI stipulates the areas or business secters that are closed to foreign investors.

She said the government should be consistent in implemeting its policies with regard to investment. Quite often, she said, good policies became useless because they were not implemented properly.

"Whether or not the DNI will boost investment in Indonesia will depend on which sectors are included in DNI," Adiningssih said.

She said production sectors of vital importance to the majority of the people should remain under the state`s control and not become part of the domain of the private sector or foreigners.

basically, she said, the DNI should serve the national interest by providing protection for national businessmen. But the important thing was that the sectors closed to foreign investment were defined clearly .

"This is to ensure that the DNI will encourage investment because clear definitions of the closed sectors will create legal certainty," she added.(*)
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