VIVAnews - Capital Market Coordinating Agency (BKPM) demanded that the authority to issue permits as well as to realize investment be delegated to the agency.
"Permission processes and investment realization should be under BKPM's authority. However, after the realization takes place, the related technical department should be authorized," said BKPM Deputy of Capital Investment Planning, Luky Eko Wuryanto, Tuesday, Jan. 27.
Wuryanto said that investment permission has not been under absolute authority of BKPM. For instance, a permit issuance should also be proposed to the Department of Energy and Mineral Resources. As a result, according to Wuryanto, BKPM seldom received an investment proposal which was still hampered by some related department.
A similar pattern occurs in banking as well. The capital investment permit issuer authority in Indonesia differs from Singapore and Vietnam. "In Singapore, the authority, the equivalent of Bappenas (Indonesian National Development Planning Agency), may conclude long-term investment realization," said Wuryanto. In fact, in Vietnam, the equivalent authority has merged with the national development planning agency.
Executive Director of Institute for Development of Economics and Finance (INDEF), Ahmad Erani Yustika, agreed that BKPM should be authorized to make decisions on investment. "Because policy clashes oftentimes happen among departments," said Yustika.
As a result, there is often wide disparity between investment approval and investment realization. "For instance, BKPM has issued a permit to build a factory. But it turns out that no electricity is supplied to the building," Yustika said.
According to Yustika, small- or medium-sized enterprises having certain values can be fully handed in to BKPM. "In addition, large-scaled investment such as infrastructures must still be under the government's authority," Yustika claimed.
According to Yustika, it is aimed at reducing the wide disparity between investment approval and investment realization.
Translated by: Bonardo Maulana Wahono
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