Ada Pertanyaan? Hubungi Kami 
Ada Pertanyaan? Hubungi Kami Fitri Novia Heriani, Mahinda Arkyasa
The recently issued Minister of Home Affairs Regulation No. 74 of 2012 on Guidelines for Cooperation Between Regional Governments and Foreign Private Entities (Regulation) has received a mixed response.
Although economists believe that the Regulation will bebeneficial to the country, a lecturer from the Universitas Indonesia faculty of law Chudry Sitompul argues that the Regulation will have a negative impact on some sectors of the economy, such as forestry.
Chudry asserted that cooperation within the forestry sector will cause extensive damage to Indonesian forests and also negatively affect the people who live around the forest areas without any party being held liable.
“I am worried that our forests will be damaged and that foreign parties will not be held liable for the damage,” he stated on Thursday (6/12).
Chudry also urged non-governmental organizations, the public, and academics to criticize and take action against the Regulation. One of the proposed actions is to submit a request for judicial review to the Supreme Court.
Marwan Batubara, Executive Director of Indonesian Resources Studies (IRESS), also rejected the Regulation. He argued that the Regulation will create more complications in forestry cases within some regions.
Marwan said that the Government should provide better opportunities for state/regional owned enterprises (BUMN/BUMD) instead of foreign entities in order to manage strategic sectors of the economy.
“The Government should prioritize domestic ownership,” Marwan argued.
Meanwhile, Drajad Wibowo, an economist, stated that Indonesia must not be ‘anti-foreign’. Foreign party involvement in strategic sectors, as Drajad said, will improve investment in Indonesia.
However, Drajad did not deny that there are some negative effects in addition to the benefits. For example, Indonesia will see a significant increase in property prices because it is considered as one of the top countries for investment based on Asia-Pacific’s Top 15 Asian Investment Prospects for 2012.
As a consequence of the raised property prices, local investors will be unable to compete with foreign investors unless they are supported by the government, Drajad concluded.
(hot/jt)
Fitri Novia Heriani, Mahinda Arkyasa
The recently issued Minister of Home Affairs Regulation No. 74 of 2012 on Guidelines for Cooperation Between Regional Governments and Foreign Private Entities (Regulation) has received a mixed response.
Although economists believe that the Regulation will bebeneficial to the country, a lecturer from the Universitas Indonesia faculty of law Chudry Sitompul argues that the Regulation will have a negative impact on some sectors of the economy, such as forestry.
Chudry asserted that cooperation within the forestry sector will cause extensive damage to Indonesian forests and also negatively affect the people who live around the forest areas without any party being held liable.
“I am worried that our forests will be damaged and that foreign parties will not be held liable for the damage,” he stated on Thursday (6/12).
Chudry also urged non-governmental organizations, the public, and academics to criticize and take action against the Regulation. One of the proposed actions is to submit a request for judicial review to the Supreme Court.
Marwan Batubara, Executive Director of Indonesian Resources Studies (IRESS), also rejected the Regulation. He argued that the Regulation will create more complications in forestry cases within some regions.
Marwan said that the Government should provide better opportunities for state/regional owned enterprises (BUMN/BUMD) instead of foreign entities in order to manage strategic sectors of the economy.
“The Government should prioritize domestic ownership,” Marwan argued.
Meanwhile, Drajad Wibowo, an economist, stated that Indonesia must not be ‘anti-foreign’. Foreign party involvement in strategic sectors, as Drajad said, will improve investment in Indonesia.
However, Drajad did not deny that there are some negative effects in addition to the benefits. For example, Indonesia will see a significant increase in property prices because it is considered as one of the top countries for investment based on Asia-Pacific’s Top 15 Asian Investment Prospects for 2012.
As a consequence of the raised property prices, local investors will be unable to compete with foreign investors unless they are supported by the government, Drajad concluded.
(hot/jt)