PERSPEKTIF EKONOMI IMPLEMENTASI UNDANGUNDANG NO. 32 TAHUN 2004 TERHADAP PELUANG INVESTASI DI DAERAH*

Abstract

Opportunity to invest is greatly influenced by opportunity to get revenue
from that investment. Revenue greatly depends on market opportunity of the
product, and the production cost (including administration and other incremental
variables). Indonesia tries to get as many investors as possible. However,
decentralization policy is among factors hampering this effort, since local
governments are encouraged to get as much revenue as they can. Committee
of Local Autonomy Implementation Monitoring found in 2002 that about 85 %
businessmen, including those in local areas, have to pay unofficial cost to certain
government personnel in matters related to their business. Besides, there are
also problems related to time duration for investment implementation and
inconsistent policies. These factors make Indonesia less interested for investors.
Provincial government should have an authority to coordinate local governments,
paving the way for sincronized local rules for a sound investment climate. Besides,
the strong position of a Mayor or Regent in line with the direct election of Head of
Local Government starting from June 2005 is hoped to create a stronger local
political stability. Added with the implementation of the Presidents Decision No.
29, 2004, on one-stop investment service, it is hoped that Indonesia will be more
interesting for investment.