Fitri Novia Heriani, Mahinda Arkyasa
To promote cooperation between regional governments and foreign private entities, the Minister of Interior Affairs has issued Regulation No. 74 of 2012 on Guidelines for Cooperation Between Regional Governments and Foreign Private Entities (Regulation).
The Regulation allows regional governments to cooperate directly with foreign private entities in various sectors, where this cooperation will take the form of joint management.
Under the Regulation, a foreign private entity is defined as a business or legal entity that is owned entirely by a foreign party domiciled and established outside Indonesian territory for the purpose of conducting business activities in a certain sector.
Firmanzah, Special Presidential Staff on Economy and Development, stated to hukumonline on Wednesday (5/12) that cooperation between regional governments and foreign private entities is essential in supporting and accelerating regional development.
Regional governments may cooperate with foreign private entities in the following sectors: forestry, agriculture, education, communication and information technology, and environmental sectors, in addition to cooperative and small-medium enterprise sectors.
Firmanzah further added that the Regulation applies strict requirements for establishing regional government-foreign private entities cooperation. One of the requirements is that regional governments may only establish cooperation with foreign private entities if Indonesia has a diplomatic relationship with the private entity’s country of origin.
Sofyan Wanandi, Chairman of the Indonesian Employers Association (Apindo), assured that although the involvement of foreign parties in several strategic sectors of the economy has raised concerns, the public does not have to worry about foreign private entity presence in those sectors.
“I personally think that [the Regulation] will not create any problems,” he stated.
However, Sofyan reminded regional government to not become too dependent on foreign entities. They must not deliberately comply with foreign entities’ demands, especially demands that will damage the environment or harm the people.
Regional governments have an important role, Firmanzah said, since they have the authority to regulate the cooperation procedures. Such regulation, he continued, must be in accordance with the prevailing laws and regulations and consider public welfare.
“The cooperation is expected to provide benefits for the country, especially for the regions,” he said.
Sofyan Wanandi agreed that cooperation between regional governments and foreign private entities will be beneficial for the regions, as it will contribute to the exchange of knowledge and technology, thus improving the quality of such areas as education and agricultural activities.
(hot/jt)
Fitri Novia Heriani, Mahinda Arkyasa
To promote cooperation between regional governments and foreign private entities, the Minister of Interior Affairs has issued Regulation No. 74 of 2012 on Guidelines for Cooperation Between Regional Governments and Foreign Private Entities (Regulation).
The Regulation allows regional governments to cooperate directly with foreign private entities in various sectors, where this cooperation will take the form of joint management.
Under the Regulation, a foreign private entity is defined as a business or legal entity that is owned entirely by a foreign party domiciled and established outside Indonesian territory for the purpose of conducting business activities in a certain sector.
Firmanzah, Special Presidential Staff on Economy and Development, stated to hukumonline on Wednesday (5/12) that cooperation between regional governments and foreign private entities is essential in supporting and accelerating regional development.
Regional governments may cooperate with foreign private entities in the following sectors: forestry, agriculture, education, communication and information technology, and environmental sectors, in addition to cooperative and small-medium enterprise sectors.
Firmanzah further added that the Regulation applies strict requirements for establishing regional government-foreign private entities cooperation. One of the requirements is that regional governments may only establish cooperation with foreign private entities if Indonesia has a diplomatic relationship with the private entity’s country of origin.
Sofyan Wanandi, Chairman of the Indonesian Employers Association (Apindo), assured that although the involvement of foreign parties in several strategic sectors of the economy has raised concerns, the public does not have to worry about foreign private entity presence in those sectors.
“I personally think that [the Regulation] will not create any problems,” he stated.
However, Sofyan reminded regional government to not become too dependent on foreign entities. They must not deliberately comply with foreign entities’ demands, especially demands that will damage the environment or harm the people.
Regional governments have an important role, Firmanzah said, since they have the authority to regulate the cooperation procedures. Such regulation, he continued, must be in accordance with the prevailing laws and regulations and consider public welfare.
“The cooperation is expected to provide benefits for the country, especially for the regions,” he said.
Sofyan Wanandi agreed that cooperation between regional governments and foreign private entities will be beneficial for the regions, as it will contribute to the exchange of knowledge and technology, thus improving the quality of such areas as education and agricultural activities.
(hot/jt)