Indonesia Revokes 6,541 FDI Licences With Investment Plans Of $23 Billion Due Lack Of Progress

Posted by EM_Equity ⋅ March 19, 2015 ⋅ Leave a comment

Filed Under $EIDO, ASEAN, Asia, Economy, EM, EM Asia, Emerging Asia, Emerging Markets, FDI, Government, IDR, IDX, Indonesia, infrastructure, investing, Investment, Joko Widodo, Rupiah, SE Asia, Southeast Asia

The Indonesian government has revoked a total of 6,541 investment permits that were issued between 2007 and 2012 to foreigner investors who had planned to invest ‎a total of $23 billion in the nation, The Wall Street Journal (WSJ) reported on Thursday.

Franky Sibarani, the head of the official Investment Board, which promotes investment and issues licenses to investors, told the WSJ the reason that the Indonesian government revoked the huge number of investment permits was due to investors making no progress realizing their plans.

According to Sibarani many investors had failed to realize their investment plans due to difficulties such as clearing land, obtaining permits from local governments, and receiving approvals on plans to minimize the environmental impacts from their investments, the WSJ reports.

“It took a long a time to get permits from local governments, making (investors) frustrated,” Sibarani said, adding that the government would welcome these investors again should they seek to apply for licenses in the future.

Indonesian President Joko “Jokowi” Widodo plans to travel next week to Japan and China in hopes of gaining billions of dollars of investment to help fund an infrastructure building boom.