Bali, Indonesia (The Brunei Times/ANN) - Asean
trade and investment stakeholders suggested the important role of government in
supporting the investment conducted by private sector, which may take forms of
either equity or debt financing for strategic business sector requiring high
level of capital.
Their involvement and support in this would
significantly affect the acceleration of national economic development.
Following a closed-door Asean Investment Forum
held at the Bali International Convention Centre (BICC) yesterday, a statement
released by the Indonesia Investment Coordinating Board (BKPM) revealed that a
discussion on the topic of co-investment had broadened the important role of
the government giving supports to investments carried out by the private
sector.
"Moreover, co-investment is expected to
provide both economic and social benefits from the utilisation of state fund
through generation of the added-value and increase of state revenues as well as
high employment rate," the statement said.
"Therefore it is necessary to conduct a
thorough feasibility study and prudent risk management in order to maximise the
rate of the return while reducing the investment risk," the statement
added.
Asean trade and investment stakeholders also
believed that investment promotion should be targeted on foreign countries with
'notably high outward investment potency and advanced industry development' to
cater to domestic capital.
It is also to encourage the sustainable
economic development through the remarkable industry growth supported by
advanced skills and technology.
In addition, it is recommended to diversify
the sources of capital as it would not only increase the quantity of capital
but also lower the risk of future major capital flight.
This was then followed by a discussion on
investment servicing, during which Indonesia shared its experience in
establishing and implementing the one-stop service as a notable innovative
improvement in enhancing public service on investment administration.
The statement said that such integrated system
processing various forms of licensing in one place has been believed to assist
potential and existing investors in obtaining the investment-related services,
fiscal facilities as well as information.
Furthermore, the cheapest, fastest and best
delivery will be achieved through the enactment of transparent and certain
investment regulation, which would significantly attract foreign investors, the
statement added.
The forum continued its discussion on the
issue of after-care investment, particularly on investment monitoring and
advisory service. The statement said that the forum was advised that the public
sector needs to increase the sensitivity and responsiveness in assisting the
settlement of various problems faced by investors during the realisation and
implementation of their investment.
"Considering that such problems generally
involve complex bureaucracy, dispute between investor and state, dispute
between investor and society, as well as environmental damage, it is then
necessary to have the government and particularly the investment agency to
gather and accommodate such problems as well as assisting the settlement and
mediating any conflicting interest," the statement said.
Moreover, the statement added, the earlier
problem handling towards amicable settlement is more preferable to prevent the
wider spread of such effects and the settlement through international judiciary
system which may be costly.
The forum also discussed fiscal and non-fiscal
investment incentives, which the statement said would attract potential
investors to conduct businesses in the domestic market.
The statement said that incentives are
considerably needed especially for such specific investment projects as the
pioneering industry possessing extensive connections, providing high
added-value and externalities, introducing new technology, as well as
possessing strategic value for national economy.
"Furthermore, recognising the effect of
incentives policy on the tax revenues of the state, the priority then should be
given to the investment providing significant rate of job opportunities,
belonging to high priority scale, taking form of infrastructure development, and
conducted in the remote area," the statement said.
Meanwhile, in the areas of public-private
partnership, the forum elaborated its views and experiences, and agreed that
the private sector is encouraged to participate in the public facilities
development in order to increase the availability of the fund, economies of
scale, economies of scope, and technology transfer.
The statement said that strategic partnership
between public and private sectors in such investment taking form as
infrastructure development requires a fair, clear and transparent distribution
of accountability and decision-making authority.
In addition, the implementation of such
partnership need to be guided by good governance principles, which may include
the community involvement, honest and ethical behaviours, commitment to
cooperate, capability to compete, leadership, and towards the sustainable
development for general welfare.
The News Desk in Bali//The Brunei Times | ANN
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