Indonesia to offer more facilities to American investors

The government has prepared many facilities for foreign investors interested in doing business in Indonesia, an official said on Wednesday.

"We will offer the facilities to all American businessmen who hold talks with President Megawati Soekarnoputri," Investment Coordinating Board (BKPM) chief Theo F. Toemion said aboard the Garuda Indonesia flight taking the President and her entourage from Honolulu to Washington DC as quoted by Antara.

During her eight-day visit to the United States, President Megawati is slated to meet with leaders of major American companies doing business in Indonesia including Texaco, Chevron, ExxonMobil, Unocal, Freeport, El Paso Energy Int, Halliburton, Anadarko and Conoco-Gulf.

Megawati will also brief American investors on Indonesia's plan to formulate a new law on investment, which will not distinguish between Indonesian and foreign investors, Theo said.

The new law is expected to be finalized this year, he added.

Indonesia has two laws on investment -- Law No. 1/1967 on foreign investment and Law No. 6/1968 on domestic investment.

The prolonged economic crisis in Indonesia has forced the government to lure more foreign investors to the country, Theo said.

"There is no other choice. We must step up investment by drafting a new law to improve access and provide more facilities for foreign investors. The country will also offer many incentives, like tax and duty waivers. The important thing is for foreign investors to be ready to do business in Indonesia," hesaid.

Theo said foreign and domestic investment in Indonesia accounted for 33 percent of gross domestic income before the onset of the economic crisis in 1997.

The investment share sharply decreased to 19 percent in 1999, he said.

He also assured that, despite the government's commitment to increasing access for foreign investors, it would continue to protect the country's small and medium enterprises.(*)