Kadin Indonesia Chairman MS Hidayat proposed to the government that private entrepreneurs who want to develop business in Eastern Region of Indonesia (KTI), especially in the areas that are still underdeveloped, given tax incentives to motivate entrepreneurs to move the economy of Eastern Indonesia.
"Kadin proposed that there is a tax incentive in the form of keringan for entrepreneurs who want to do business in Eastern Indonesia, especially in areas that are still underdeveloped," said Hidayat, in Jakarta, Wednesday.
However, Hidayat is unwilling to specify what kind of tax Kadin proposes to be relieved or perhaps even abolished.
According to him, not interested investors in KTI, among others, due to the lack of various forms of incentives provided by central and local governments as well as inadequate infrastructure facilities.
A number of infrastructure facilities that still need to be needed in KTI include sea ports, roads, irrigation, piped water, irrigation, and airports.
"In the Infrastructure Summit meeting that lasted some time ago should offer infrastructure to foreign investors can be directed to KTI," said Hidayat.
He told the Indonesia Infrastructure Summit January 17-18, 2005, the government promised to issue 14 regulations that support the entry of foreign and domestic investment and that must be met in order to restore and increase investor confidence to the government.
"I have heard that there are now eight completed regulations, what the government promised in the Infrastructure Summit should be done," he said.
Hidayat said that if the government is able to fulfill its promise to issue such a conducive regulation, investors will enter and infrastructure projects will be on the road and will also encourage investment in other fields such as manufacturing industry.
Previously, the government promised the end of January 2005 will issue 14 PP or Keppres to encourage the entry of investors, especially on 91 infrastructure projects offered in Infrastructure Summit and project tender is scheduled to begin in March 2005.
Hidayat is optimistic that if infrastructure projects start running this year, then the impact will improve the performance of the national economy, especially in KTI which is currently in need of domestic and foreign investors.It is also said that if infrastructure in KTI start running, then it will give a chain impact for the economic growth of KTI which will eventually be able to absorb a lot of manpower. (* / dar)