For most of the last 50 years, foreign firms had to have a significant presence in Jakarta regardless of where their actual operations were located. Decisions on licensing and contracts of work were made in the capital, and if a company had any hope of influencing these decisions, it was in Jakarta. In the future, for all but a limited number of international companies with specialized activities, many important decisions will be made and opportunities found outside Jakarta, mostly in the provincial capitals but also at the lower, Bupati, or regency levels. Contracts of work, licenses for construction, exploration, production, and almost all other new investment will need the approval of the local government. Optimists might say that this could simplify things for the companies involved.
Optimists are often less than well informed.
The government of Indonesia also seems to want foreign companies to do more than be involved with the provincial governments. There have been several statements lately of desire for a new role for foreign companies in the development of Indonesia. Personages such as Laksamana Sukardi and Freddy Numberi have voiced their views of future foreign investment. He said that there must be a change from the New Order ways and that the foreign investors' obligation was to be a partner with the local community, stressing equality and technical transfer, of course, but also encouraging the People's Participation. He emphasized that the human touch will be more important in the future, including promotion for the indigenous people working in a company and also the education and increasing welfare of the local people.