New BKPM Chief Urged To Boost Domestic Investment

Jakarta, Nov 28 (Antara) - The Indonesian Employers Association (Apindo) has called on Franky Sibarani, the new chairman of the Investment Coordinating Board (BKPM), to boost local investment in a bid to develop the domestic sectors. "He (Franky) must be able to convince businessmen to increase their domestic investment," Sofyan Wandandi, Apindo`s general chairman, remarked here on Thursday. He said the government must boost domestic investment as currently, it is only 39 percent of the country`s total investment. The government is not only expected to boost large-scale investment but it must also be able to embrace local small and medium businesses (UKM), so that they can advance, he emphasized. "Merge with foreign UKMs to boost domestic UKMs through promoting their products, among others. The number of our UKMs is huge at around 95 percent. I think it is applicable. So, we must not only think of big investments but also the small ones," he affirmed. Sofyan hoped that Franky, who was just appointed that day, could overcome obstacles to ensure that investment is spread evenly across the country. Franky must coordinate with representatives in the regions to overcome the licensing problems that have generally hindered investment, Sofyan noted. "Local licenses have indeed been hindering the investment flow. The BKPM has representative offices in the regions, and so, he can coordinate with them to deal with the problem to ensure that investment will grow more evenly. Until now, the eastern region has always been left behind. Efforts must be taken to see that investment is spread more evenly," he stated. Franky Sibarani was officially inaugurated as the new BKPM chief by the president at the state palace on Thursday to replace Mahendra Siregar, who had resigned following the end of the term of the cabinet of former president Susilo Bambang Yudhoyono. In line with President Joko Widodo`s directives, the BKPM is expected to be able to improve and simplify investment licensing procedures to eradicate investment obstacles and ensure the smooth implementation of projects. He pointed that the simplification of licensing procedures is a key factor with regard to improving Indonesia`s competitive power. "Licensing is one of the key factors that must be improved to boost competitiveness. I wish it could be carried out in a fast, simple, transparent, and integrated manner. It is not only the task of the BKPM but also the government to make it happen. In view of that, the ministers have submitted simplification proposals for their institutions, and so, they only have to be adjusted with the system in the BKPM," he added.