Agribusiness Investment ReformThe investment enviroment provided by Indonesian government is primarily intended to create a more conducive environment for agribusiness development and an incentive for farmer and private enterprises to carry out agricultural activities. Hence, investment by both foreign and domestic investors is aimed at stimulating and encouraging investment in production activities with the direct involvement of farmers and other parties in private sectors.
The primary target of agribusiness investment is increasing production in food crops, horticulture, estate plantation and livestock the investment also plans to create production facilities for inputs like fertilizers and agricultural machinery. It is expected that these investments in processing, distribution and marketing activities, as well as the financial system will accelerate the development of agribusiness in rural area.
During the 2005-2006 periods, total domestic investment in agribusiness was Rp 40,713.1 billion. With largest contribution invested in food industry and estate crop. Due the economic crisis, this number declined to Rp 766 billion in 1998. The domestic agribusiness investment was about Rp 763.3 billion due to the more actable economic and political condition in Indonesia. And in 2006, the number domestic investment was Rp 28,301.7 billion.
Foreign investment trend were decrees, during period 2005-2006 total foreign investment in agribusiness was US$ 3,009.3 billion and average US$ 1,504.7 billion. In 2006, the number foreign investment was US$ 1,904.9 billion. However during 2006 the number of foreign investment was growing as well as the domestic investment.
Investment policies statementRecognizing, that the importance of private sector investment to achieve sustainable economic growth, employment creation, development of strategic national resources, transfer and implementation of competitive technology and technical skills, export growth and improved balance of payments.
Appreciating, that an appropriate legal framework is prerequisite to promoting a stable, predictable and attractive business environment in order to encourage and support private economic activity Indonesian and foreign investors.
Acknowledging, that an appropriate legal framework for investment must provide certain key principles, among which are: equal treatment of investor in similar circumstances irrespective of nationality; protection against expropriation, confiscation or requisition of investments and unilateral alteration or termination of contracts, freedom to repatriate foreign investment capital and net proceeds there on; and access to impartial, quick and effective mechanisms for the resolution of commercial and other investment disputes.
Cognizant, that these principles have increasingly been adopted as standard international practice and have been incorporated into national legislation in many countries, both regionally and globally, and have been recognized in various international documents, including the GATT/WTO agreements, the APEC Non Binding Investment Principles, and numerous bilateral investment agreements.
Undertake and resolves to reform the investment policies, legislation and regulations of the Republic so as to create and enabling environment for private investment consistent with the above stated principles, to be characterized by active promotion and facilitation of investment, transparent criteria for the admission and establishment of investments, transparency of government procedures and administration, screening and licensing requirements based on a short “negative list” of restricted investment.
The government has therefore established an “Investment Policy Reform Initiative” having as its objective the encouragement and facilitation of private sector investment through reform and implementation of transparent, predictable, market oriented policies applied equally to both foreign and domestic investors. In this the government has recently adopted major policies changes, including liberalizing the rules for foreign investment.
The government is committed to the rapid elimination of the remaining restriction on foreign and local private investment. This statement sets forth newly adopted and current policies of the Government for promoting and facilitating private sector investment in Indonesia. The Government is fully committed to these policies and will take the necessary steps to ensure their effective implementation. This statement will be supplemented by detailed investment guidelines to be issued in the near future. To encourage and facilitate private investment, the government has adopted the following policies.
Freedom to InvestInvestors shall be permitted to invest in any sector of the economy except in small number of activities, which are listed on “negative list”. There shall be no restriction on the size of the investment, the source of funds or whether the product s is destined for export or for the domestic market. Exciting foreign investors may invest in activities other than those initially authorized, except for activities started on “negative list”.
Company FormationIndustrial licenses are still needed based on the principles of fairness, simple, quick and transparent mechanism and procedure. Procedures for company formation are to be administered so as to permit prompt establishment of business enterprises.
Taxes and DutiesThe government is committed to enhance the country’s investment climate and international competitiveness by further reducing simplifying taxes and duties through ongoing tax and trade policy reform programs. The current Indonesia tax law provides tax incentive to investor who invests in certain sectors and or certain areas as follows:
-Investment allowances,
-Accelerated depreciation and amortization,
-Expanded loss compensation but not more than 10 years,
-10% tax rate for dividend paid to foreign tax payer, except to prevail tax convention maintaining lower tax rate.
Indonesia always tries to maintain equal treatment in tax law not only for tax cases that have similarities. By giving tax incentive to investors, Indonesia must assure that this incentive granted still reflect the principle of equal treatment and the application of that principle did not depart from the objective of tax incentive.
Availability of to Foreign ExchangeThe government will continue to ensure, according to pre-set criteria and procedures that foreign exchange for import transactions and dividend payments is freely available and the Governments is committed to ensuring the ease of repatriation of capital and payments for business services.
Access to Local FundingThe government is considering introducing a simple system that will allow foreign investments access to local funding based on simple established criteria.
Labor PracticeWithin the framework of the labor laws of Indonesia, the Government recognizes that enterprises may require foreign expertise. Accordingly, it will continue to make residence permits readily available according to prevailing regulation for key personnel required for employment in such enterprises.
General InfrastructureThe Government recognizes the importance of infrastructure to support investment and is committed to make available adequate infrastructure such as transport, electricity, water, and communications through partnership mechanisms that attract private capital. Adequate legal protection including guarantees for the integrity of contracts will be provided.
Availability of LandThe government is committed to ensure that land for industrial and commercial use is ready available to investors. The Government will receive and simplify all existing land licensing and environmental approval procedures to ensure transparency.
The Government is committed to develop new serviced industrial sites and has provided the necessary framework to enable private investors to develop industrial sites including through arrangements for subleasing to other investors.
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Pemerintah Propinsi Jawa Barat melakukan usaha peningkatan kerjasama bidang Perikanan dengan Pemerintah Ishinomaki, Prefektur Miyagi, Jepang. Kerjasama tersebut telah dimulai sejak bulan April 2007, berupa pelatihan awak buah kapal penangkap ikan, pelatihan pengolahan produk perikanan, dan teknologi perikanan. Sejak pertengahan tahun lalu telah dilatih sebanyak 22 orang lulusan Sekolah Kejuruan Perikanan di Ishinomaki. Pada tanggal 2-3 Desember 2008 Wakil Gubernur Jawa Barat Yusuf Macan Efendi melakukan kunjungan kerja ke Ishinomaki guna membicarakan peningkatan kerjasama ini, termasuk didalamnya usaha hibah kapal penangkap ikan. Dalam pertemuan dengan para pejabat pejabat Pemerintahan Ishinomaki dan Kamar dagang Ishinomaki, Wagub juga menawarkan kerjasama dalam bidang pariwisata seperti ecotourism. Tampak pada Gambar Wagub sedang memperlihatkan lambang logo Pemerintah Propinsi Jawa Barat sebagai tanda kenang-kenangan kunjungan kepada Wali Kota Ishinomaki Mr. Kimio Doi. Dalam kunjungannya beliau didampingi 4 orang anggota DPRD dan 5 orang pejabat Propinsi Jawa Barat.
Delri telah melakukan kunjungan ke Pasar Lelang Ishinomaki, Pabrik Pengolahan Kamaboko, Pusat Pelatihan Trainee Perikanan dan Kantor Gubernur Miyagi. Pada gambar sebelah tampak Delri sedang berada disamping kapal ikan yang sedang menurunkan hasil tangkapannya di Pasar Lelang Ikan Ishinomaki.
