ID :
85493
Wed, 10/21/2009 - 17:40
Auther :

PADANG GOVT TO EXEMPT INVESTORS FROM LICENSING FEES

Padang, Oct 20 (ANTARA) - Padang city's municipal administration, Indonesia, is to exempt companies intending to invest in Padang from all licensing fees and complete official document processes within a maximum of one week, a spokesman said.

"Five companies have already stated their intention to invest in Padang and they will all be freed from the obligation to pay licensing fees, including Building Construction Permit (IMB) fees. One or two of them are to begin constructing soon," Padang Mayor Fauzi Bahar said here Tuesday.

Speaking at the West Sumatra Governor's office during a visit by Artha Graha business group chief Tomi Winata, and a few other businessmen, Bahar said the city government was to make the concessions to encourage investment in the city to countervail a recession in the local economy caused by the devastating quake of September 30.
He said the magnitude-7.9 quake had destroyed many star-rated hotels and other business structures or work places in Padang, causing the cessation of as many economic activities and the loss of possibly thousands of associated jobs.

With a drastic increase in the number of unemployed people, Padang was now also facing the possibility of a corresponding rise in its crime rate.

The Padang city government was therefore trying to attract investors whose businesses could revitalize the local economy and create badly needed job opportunities. And to that end, it would grant companies investing in Padang special facilities.

At the same time, the mayor said, the city government had called on the owners or managements of the ruined business establishments not to lay off any of their workers.

Companies or employers who did lay off workers would face lawsuits filed by their workers and the city administration would assist these workers by hiring lawyers for them, Bahar said.

"Many of our residents have already lost their homes by the quake , and the business community should not add to their plight by laying off workers," he argued.

Meanwhile, thousands of workers at private hospitals, modern markets and hotels in Padang are reported to be facing the prospect of retrenchment.

Last week, hundreds of employees of a hospital named Bunda Medical Center (BMC) held a rally to protest the fact that each of them had received a letter from the management asking them to resign.

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