At least five local bylaws have impeded investment in the Central Java regency of Banyumas, home to around 1.7 million people, a local official says.
The five bylaws should be reviewed to improve the investment climate, Banyumas Investment Board (BPM) promotion division chief Aris P. said Friday.
"The controversial bylaws concern spatial planning, building and modern markets," Aris told The Jakarta Post at his office.
"The ordinances should be rectified and reviewed if we all are committed to further improving Banyumas through investment," he said.
The bylaws failed to accommodate the people's aspirations, or were still "top-down" and subject to protests from local community members.
"Investors who intend to do business in Banyumas certainly don't expect *such bylaws*," said Aris, adding that bureaucratic reform was necessary to improve public services for the community.
Aris also said investors were not interested in Banyumas for a number of other reasons, including poor infrastructure and facilities, sub-standard human resources, poor community awareness of the importance of investment, and limited promotional campaigns outside the regency.
"We will discuss the issue with legislative council members and other related agencies immediately. This is an urgent matter because we have high hopes that investment can alleviate poverty and unemployment here," Aris said.
When asked for comments, Banyumas legislative council deputy speaker Supangkat said the council was grateful to the BPM for its comments on the bylaws.
"We may not realize the strengths and weaknesses of bylaws without input from related parties," Supangkat said.
"We will wait for an official statement and request from the BPM and other agencies on this issue, after which we will discuss the bylaws in meetings at the legislature," Supangkat said.
Banyumas is one of 35 regencies and mayoralties in Central Java. Banyumas Regent Mardjoko, appointed in mid 2008, had vowed to develop the regency by attracting investors.
During campaigns leading up to the regency election last year, Mardjoko promised to alleviate poverty through investments and, improving the wellfare of 700,000 people living below the poverty line there.
After his installment as regent, Mardjoko remained optimistic about attracting investment, for example with PT Sampoerna Bio Energy, a company he said would invest Rp 1 trillion for a a bio-ethanol plant in Banyumas.
However, after more than a year in office, Mardjoko has failed to realize his promise, and has been blamed and criticized and even called a liar.
Mardjoko says a number of factors have prevented him from keeping the promise, including several bylaws that have acted as a deterrent to investors.
