BKPM accepts cold storage business wholly owned by foreign investors

BKPM accepts cold storage business wholly owned by foreign investors

Franky Sibarani. (bkpm.go.id)

The investment value shrank sharply to US$5.3 million in two projects in 2014 after the restriction was imposed."
Jakarta (ANTARA News) - Head of the Capital Investment Coordinating Board (BKPM) Franky Sibarani said he accepts proposal to allow foreign investors to wholly own business in cold storage in any area in the country.

A government regulation sets limit to foreign ownership of business in cold storage depending on areas.

The reason for accepting the proposal is to attract foreign investment to sector vital to support development of maritime industry, to open more jobs, and to facilitate transfer of technology, Franky said.

The proposal came from the Marine and Fisheries Ministry and business players in fish processing industry.

In Sumatra, Java, and Bali, foreign investors are allowed only to have up to 33 percent of cold storage company , and in eastern Indonesia such as Kalimantan, Sulawesi, Nusa Tenggara, Maluku and Papua the ownership is up to 67 percent.

In the period of May 25, 2010-April22, 2014 before the restriction was slapped there were five foreign investment in cold storage valued at US$72 million.

"The investment value shrank sharply to US$5.3 million in two projects in 2014 after the restriction was imposed," he said.

Meanwhile, domestic investment (PMDN) in the business sector was valued only at Rp3.1 billion with one cold storage.

"The recommendation of the marine and fishery ministry is in line with the proposals of the business sector and the business association to BKPM," Franky said.

In the supply chain the availability of cold storage is vital for fishermen, he said.
(Uu.H-ASG/O001)

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