Indonesia tightens screening of foreign investors to ensure long-term commitment

FILE PHOTO: A security guard uses a metal detector to scan a visitor's handbag at an entrance to the Sarinah shopping mall, next to a McDonald's Corp. restaurant, in Jakarta, Indonesia, on Friday, Jan. 15, 2016. Indonesia is conducting thorough assessments of investors' financial strength, technological capabilities and other relevant aspects. - Bloomberg

JAKARTA: The Indonesian government has implemented a new policy to screen and select foreign investors planning to invest in the country to ensure the sustainability of future collaborations, Rosan Roeslani, minister of investment and downstreaming, said here on Thursday (Aug 7).

Rosan, who also heads the Investment Coordinating Board (BKPM), said the policy has been in effect for several months.

He explained that under this new approach, his office will conduct thorough assessments of investors' financial strength, technological capabilities and other relevant aspects.

"In addition to inviting foreign investors, the BKPM is also analysing the strengths of those entering Indonesia," he was quoted as saying by local media.

According to him, such analysis is essential because investment is a long-term commitment, and the government wants to avoid potential problems investors may encounter in the future.

To carry out these evaluations, the BKPM has formed a dedicated team, he added. - Xinhua