Labour-intensive projects in works
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JAKARTA - The Indonesian government is optimistic that realised investment in labour-intensive industries will rise this year and beyond if land-procurement issues are settled and tax allowances for the industrial sector are agreed on.
Investment Coordinating Board (BKPM) head Franky Sibarani said investment in labour-intensive industries would probably increase, if the government could soon settle land issues and grant allowances on income tax.
“While a number of factors have attracted investment commitments in the labour-intensive sector … there are still some hurdles in actualising those commitments,” he said at a press conference.
He said his agency would focus on pushing the government to provide immediately a definitive regulatory framework on land booking and tax allowances for labour-intensive industries.
A number of potential investors in labour-intensive industries have run into problems obtaining land, mostly due to price increases and uncertain regional spatial planning, he said.
