T

he Lampung provincial administration says it will make life easier for prospective investors in the province as part of its efforts to spur economic growth.

Lampung Investment and Integrated Licensing Agency (BPMPTD) head Djohan said Lampung Governor Sjachroedin Z.P. had issued Gubernatorial Decree No. 15/2011 on the delegation of authority in the licensing and non-licensing sectors.

“The decree regulates that investment licensing has been handed over to the Lampung BPMPTD. This is aimed at cutting high economic costs due to widespread illegal levies,” Djohan said on Tuesday.

According to Djohan, his agency has been delegated to handle 82 licensing and 46 non-licensing procedures from 18 regional working units (SKPD) within the Lampung provincial administration.

“The policy is expected to provide more privileges for prospective investors to do business in Lampung so as to achieve gradual improvement, as well as the delegation of a number of licensing procedures from the Investment Coordinating Board [BKPM] to the regions,” he said.

“With the delegation of authority, regency and mayoralty administrations in Lampung would also have more freedom to issue investment licenses,” he added.

He said the Lampung BPMPTD would also provide one-gate licensing services to make the business license application easier.

Based on BPMPTD data, the investment value of foreign (PMA) and domestic investors (PMDN) amounted to Rp 2.36 trillion (US$276 million) in 2009 and Rp 2.29 trillion in 2010.

According to Djohan, the figures signify that the Lampung provincial administration should be more aggressive in carrying out strategic efforts to draw investors, such as conducting domestic and overseas promotion campaigns, like the 2011 Lampung Investment Summit, to formulate effective strategies to boost investments.

Djohan said Lampung had great economic potential, especially in the agricultural, plantation, fisheries, livestock and tourism sectors. However, he said, the administration had not been able to fully tap that potential due to inadequate infrastructure.

“Starting this year, the Lampung provincial administration will focus on infrastructure development, such as restoring and building roads across the 11 regencies and two municipalities in the province, which could amount to Rp 600 billion annually. Infrastructure improvement is expected to draw more investors from outside Lampung to invest in the province,” Djohan said.