Economic Reform Policies Can Maintain Trust: Investor

Jakarta (Antara Bali) -- The government's commitment to boosting economic growth through a number of structural reform policies can maintain investors' trust in the domestic market, capital market investor Michael Steven said.

"The government is expected to realize its policies soon to attract the inflow of foreign funds to the capital market, as well as foreign direct investment," Steven, who is also the president director of PT Kresna Graha Securindo, stated here on Tuesday.

He added that one of the policies issued by the government is a tax incentive to encourage foreign companies to invest in certain areas in Indonesia. So foreign investment potentials venturing into the country's capital market will be high and will raise the value of the Indonesian stock market capitalization.

In addition, it will also push domestic companies to float their shares in the Indonesian Stock Exchange (BEI), he affirmed.

The government has issued an economic structural reform policy package comprising policies on tax allowance, anti-dumping import duties, visa-free services, the use of 15 percent biofuel mix, the application of a Letter of Credits system for mining companies, and the restructuring of domestic reinsurance firms.

The first policy is directed towards tax allowance for companies investing in Indonesia, companies creating employment, companies that are export-oriented, and companies that carry out research and development.

To protect domestic industries, the government will also issue an anti-dumping policy by imposing a temporary anti-dumping tax and a temporary security import tax on imported products that are traded unfairly through dumping.

In the tourism sector, the Indonesian government  will start offering visa-free visits to tourists from 30 countries from April. Therefore, the number of countries availing this visa-free facility will increase to 45, as 15 others already enjoy this policy (WDY)