20 Rules Will Be Revised to Smooth the Investment

The Government acknowledged that there are 20 regulations are currently being revised to ease the investing environment in Indonesia. One of them is the labor problems.

Minister of Industry, MS Hidayat, said that any regulations that become current investment barriers will be rectified.

Investment Regulation in Indonesia

Government has begun to address those regulations in order to make changes, although not being mention specifically.

"It’s part of government commitment to create a more conducive investment environment. So there are more than 20 regulations that will be revised, updated and adjusted."

"The Land Acquisition Law hopefully will be approved by Parliament today, as it has been approved in the committee," said Hidayat in his office on Friday (16/12).

According to Hidayat, the revision includes government-issued regulations. For example, Law No. 13 Year 2003 about employment.

"I also expect that the Labor Law No. 13, will be completely revised by 2012 so that the investor barriers will be resolved,” he said.

Regarding the Indonesian investment rank that has been increased by ratings agency Fitch, he said that at first, government predicted the investment grade will be given in 2012.

"But last night it has been announced, (i am sure) the Coordinating Minister will hold a meeting to prevent in case there is any increase or surge in FDI (foreign direct investment) or portfolio,” he said.

Hidayat added that the other issues besides regulation is the high demand for infrastructure issue.

Source: Analisa