Will The Ministry Of Investment Be The Answer To Bureaucratic Problems Between Ministries?

Illustration (irfan Meidianto/VOI)

JAKARTA - The Indonesian Chamber of Commerce and Industry (Kadin) considers the government's plan to make the Investment Coordinating Board (BKPM) the Ministry of Investment and Job Creation as a new and very positive breakthrough. In fact, it can be the answer to bureaucratic problems between ministries.

Vice Chairman of the Chamber of Commerce for Food and Livestock Industry, Juan Permata Adoe said that during this time in practice both foreign and domestic investments are often in the knot of relations between ministries that are never in sync.

According to Juan, BKPM has been only as a place of investment registration. While the rules in making investments back to each sectoral ministry. Such as the Ministry of Agriculture, Industry, Trade.

Juan said, BKPM can not provide guarantees to investors related to its business to get support or not from the government, especially related to the supply chain for raw materials.

Furthermore, he said so far related to the import of raw materials has always been a debate between ministries. Businesses need import permits so that their business sector can move.

"If we make investments related to the example of food needs. Indonesian food is mainly mostly imported raw materials. Once processed in Indonesia, the value editnya industry is in Indonesia. But the Ministry of Agriculture sees why not use domestic products, the problem (is) standardization," he said in a virtual discussion, Saturday, April 10.

Meanwhile, said Juan, if talking standardization means to be equalized on the raw materials that have been agreed when applying investments. "We have said we want investment but the raw materials requested by A. A it consists of imports of several percent, local can be used so many percent. Now it's a collision," he explained.

"The ministry of agriculture does not recommend, akhrinya move to the Ministry of Trade and Industry. Can't walk. This needs to be ministry so that his finances can be a knot of problems that currently exist," he said.

Therefore, Juan hopes that the establishment of BKPM as the Ministry of Investment and Job Creation will have a positive impact on the business world. So that entrepreneurs have certainty in investing.

Actually, said Juan, since the government in the New Order era, the Ministry of Investment and investment is under one roof. In 1967, the government established an institution under the name of The Foreign Investment Advisory Board (BPPMA).

However, in 1973 the institution was renamed BKPM. In 1987 BKPM changed to the Ministry of State Investment. Five years later, in 1992, the Ministry of State For Investment was split and the institution that manages the investment returned to BKPM.

The change in nomenclature actually has the same goal of attracting foreign and domestic investment to enter Indonesia and finance existing development. Thus creating an economic turnaround by offering indonesia's natural wealth.