Jakarta – The Indonesian government may allow foreign investors to control 100 percent shares in universities and hospitals, a report said Tuesday.

The policy is aimed at preventing rich Indonesians from spending their money on medical treatment and education overseas, the head of the Investment Coordinating Board, Theo Tumion, was quoted as saying in the evening Suara Pembaruan daily. He said the move was being discussed with related ministries.

"Rich people often seek medical treatment overseas. If those hospitals were established in Indonesia, there would not be so much waste of money," he was quoted as saying.

He said prestigious higher learning institutions such Harvard University could open a branch in Indonesia and offer their own curricula. "Even the teaching staff can be all-American," he said.

Presently foreigners who wish to invest in Indonesia must cooperate with local partners. Indonesia has seen a sharp decrease in foreign investment owing to legal and security concerns.

Bisnis Indonesia daily said the government approved 149 foreign direct investment projects worth 489.3 million dollars in the two months to February, compared to 189 projects worth 2.33 billion dollars a year earlier.

It quoted a source at the investment board as saying: "Foreign investors are still worried about the security and legal [uncertainty]. Even Japan has reduced its investments here."

Officials could not be reached to confirm the report.