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Jakarta, CNN Indonesia –
A total of 35 investor global sends an open letter to government IR related to the discussion and ratification of the Legal Plan (RUU) all the law Create a job (Ciptaker).
The letter was sent prior to the ratification of the Ciptaker bill to the coordinating minister of Economic Affairs, Airlangga Hartarto, the coordinating minister of Maritime Affairs and Investments, Luhut Binsar Panjaitan, and the head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia.
Furthermore, the same letter was also addressed to the Minister of the Interior, Tito Karnavian, the Minister of Forestry and Environment, Siti Nurbaya Bakar, the Minister of Law and Human Rights, Yasonna H Laoly, and the Minister of State, Secretary Pratikno.
The letter was sent because they saw that the law the RPD just passed earlier this week has the potential to damage the investment climate in Indonesia.
Investors whose share of the investment value in RI reaches $ 4.1 trillion also called the Ciptaker bill the risk of violating best practice standards (better practices) international investment.
They believe that the infringement may jeopardize business activities that, in the long run, will prevent investors from entering the Indonesian market.
The letter said that this opinion from global investors contradicts the government’s argument that the Ciptaker bill is designed to facilitate investment in Indonesia.
[Gambas:Video CNN]“We, the global investors, the undersigned, write to express our concern about the proposed deregulation of environmental protection in the Job Creation Bill,” was quoted in the investor’s open letter on Tuesday (10/6 ).
Investors admit that they are concerned that changes to the licensing framework, environmental compliance monitoring, public consultation and sanctions system stipulated in the Ciptaker Bill in the future will have a negative impact on the environment, rights humans and work.
This concern is considered to create significant uncertainty and could affect the attractiveness of the Indonesian market.
“We acknowledge Indonesia’s progress in protecting tropical forests in recent years, but the proposed bill could hamper this effort,” they said.
Although the Ciptaker bill, which has now been passed into law, is aimed at increasing foreign investment, investors expressed concern about the negative impact on their portfolios overall in Indonesia. The reason is that the birth of the uu has the potential to increase the reputation, operational, regulatory and climate risks of companies operating in Indonesia.
Investors are therefore urging the Indonesian government to do a number of things. First, conserve and promote laws that support forest and peatland conservation.
Second, maintains a long-term vision when developing a Covid-19 economic recovery plan, ensures that social and environmental considerations are essential for Indonesia’s recovery.
Third, invite the Indonesian government to collaborate to ensure that the Indonesian market develops in a more sustainable direction saying that economic development and environmental protection are not necessarily mutually exclusive.
There is also a list of the 35 investors, namely:
1. activity
2. asr asset management
3. Aviva Investors
4. BMO Global Asset Management
5. Boston Common Asset Management
6. Commissioners of the Church of England
7. Congregation of Sisters of Santa Inés
8. Christian Super
9. The Pensions Committee of the Church of England
10. Dana Investment Advisors
11. Domini Impact Investments LLC
12. Dominican Sisters – Grand Rapids
13. Dominican Sisters of Mission San José
14. Dominican Sisters of San Rafael
15. Graph 8 Investment strategies
16. Future Super
17. Capital management of the green century
18. Indép’AM
19. Karner Blue Capital
20. KLP
21. Management of legal and general investments
22. Forum of pension funds of local authorities
23. NN Investment Partners
24. OP Investment management
25. Pax World Funds
26. Religious of the Western Province of the Sacred Heart of Mary
27. Robeco
28. Seventh Generation Interfaith, Inc.
29. Sister of St. Francis of Philadelphia
30. Sisters of Saint Joseph of Orange
31. Skye Advisors LLC
32. Coalition for Socially Responsible Investment
33. Store brand asset management
34. Sumitomo Mitsui Trust Asset Management
35. Trillium Asset Management
CNN Indonesia I have tried to contact the coordinating minister for the economy, Susiwijono, and the presidential spokesman, Fadjroel Rachman, to request a response to the letter. But until the news was published, the person concerned had not yet responded.
Meanwhile, Peter van der Werf, Robeco’s Senior Engagement Specialist, confirmed a letter was sent to the Indonesian government.
“Yes, Robeco and 34 other investors sent a letter to the government,” he replied in a written message to CNNIndonesia.com.
He explained that the letter was sent to initiate a dialogue with the Indonesian government. Robeco himself is concerned about the Cipta Kerja Omnibus Law, which is considered to have a negative impact on the protection of the environment.
“Together with a group of global investors, we aim to initiate a constructive dialogue with the Indonesian government to ensure that the new law provides business reforms, but at the same time continues to protect Indonesia’s natural resources,” added Werf.
He said the letter was part of an evaluation of the investment decision made by Robeco. In order to make well-informed investment decisions, his party keeps abreast of important regulatory developments in major markets, one of which is Indonesia.
(well / eight)
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