REPUBLIKA.CO.ID, JAKARTA -- More comprehensive legal certainties are needed to ensure that businesses have guidance to develop special economic zones (KEK), Chief Economic Minister Sofyan Djalil said.

"We know that in the economic sector, legal certainties are crucial. Without them, economic players will have no guidance," the minister stated during a discussion at his office here on Tuesday on legal development in creating KEKs.

"A legal umbrella is important to boost the development of KEKs in Indonesia. We have a lot of work to complete in the legal aspects of KEKs," he noted.

Citing the Cikampek-Palimantan toll road project as an example, Djalil added that the contract for the project was not designed appropriately because if they failed to complete the project, the government, based on the contract, could take over and auction it.

However, there is no window specified between the takeovers and auctioning of the project. So the bank that provides the funds should be worried as it will have to wait for whenever the auction is held.

"The bank should be worried because the government can take over the project and auction it. If it does, it can take some three years before the project is sold at an auction," he explained.

Djalil also observed that this condition could hamper the development of KEKs, which is why regulations should be improved to boost their development.

Moreover, the minister pointed out that in the 2005 to 2015 period, only 2 percent of the projects that the government offered to the private sector was realized.

"Of the many projects, only about 2 percent were realized, including the Cikampek-Palimantn toll road project," he affirmed.

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