"Uncertainty in laws could lead to extortion by several officials. It would make criminalization easy of officials and employers," Sofyan said before attendants at "World Investment Report 2013" by United Nations Conference on Trade and Development (UNCTAD).
He urged the government to crate certainty to prevent extortion cases.
"Businessmen can`t do anything if they are asked for funds by officials. The businessmen are afraid if they do not give them, their businesses can`t run well because no permit would be issued by the officials," he said.
He also mentioned cases of overlapping in policies and laws. "In some cases a regional head processes a land permit but the forestry agency later issues no permit because the land is for conservation forests," he said.
A land use permit could also be changed by a regional head in other cases, he said.
"There is a case in which a regional head gives a permit to a businessman but the permit is later canceled after a new regional head succeeds him," he said.
"The first regional head gave a permit but it was later canceled by the next regional head," he said.
Sofyan also quoted extortion cases in plantation, forestry and mining sectors.
He urged the government to create integrated regulations for employers. He said the government could start by revoking overlapping regulations.
"How could employers be sure with their business future if there is legal uncertainty. Policies and laws are everything for employers," he said.
"Employers would feel safer to run their businesses if central and regional regulations guarantee them," he said.(*)