Sign up | Log in



Home  >>   Daily News  >>   Indonesia News  >> Investment  >> Investors need actions,not talks: Economists
NEWS UPDATES Asean Affairs   31 October 2013  

Investors need actions,not talks: Economists

Government officials need to walk the talk in improving Indonesia’s investment climate after the latest report by the World Bank and the International Finance Corporation (IFC) indicated little progress in their pledge of streamlining business processes, economists have said.

“Investors are flocking to Indonesia due to the huge investment opportunities, perhaps that’s why the government appears to be lazy [in implementing reforms] because, even when they do nothing, liquidity and foreign direct investments (FDI) will come here anyway,” said A. Prasetyantoko, chief economist of state-run Bank Tabungan Negara (BTN).

The report ranked Indonesia 120th in their annual Ease of Doing Business survey. The report said that, throughout 2012 to 2013, Indonesia had only accomplished one business reform: improving its credit information system.

The ranking of Southeast Asia’s largest economy lagged significantly behind its ASEAN counterparts, compared to Malaysia (8th), Thailand (18th), Brunei Darussalam (59th), Vietnam (99th) and the Philippines (108th).

“Yes, Indonesia is a bigger, more complex country compared to its neighbors, such as Malaysia and Thailand, but we have to admit that our efforts in improving our business climate have not yet been
optimal,” said Prasetyantoko.

The government has frequently expressed its never-ending commitment to improve Indonesia’s investment climate.

Last week, Vice President Boediono unveiled a policy package that included planned presidential and government regulations that would be issued as late as February next year, which would make it easier for investors to establish new businesses, obtain building permits and apply for electricity access, among others.

However, critics fear that the government may only offer empty promises, especially when reflecting on its previous pledges. For instance, the government has stated that it will revise the list of business sectors that are wholly or partially closed to investment, known as the negative investment list (DNI) in an attempt to make industries more investor-friendly.

The new list would be completed by the end of the third quarter this year, then Investment Coordinating Board (BKPM) chairman Chatib Basri — now finance minister — once promised, but it has not been unveiled until now.

For now, Indonesia remains a “heavily attractive” country among foreign investors due to its vast natural resources and the high potential of its manufacturing sector, according to Destry Damayanti, chief economist of state-run Bank Mandiri.

BKPM data showed that FDI jumped 18 percent to top record-high level of Rp 67 trillion (US$5.9 billion) in the third quarter, but she argued that the country still punched well below its weight and could record higher figures.

“We are especially weak in terms of connectivity – the dwelling time in our ports is still lengthy, for example. This shows that there is no significant improvement yet,” said Destry. “Some recent issues related to labor might also be seen as annoying [among foreign investors], so there needs to be a solution for that.” (sat)

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories   31 October 2013 Subsribe Now !
• CITIC Telecom CPC Announces Strong Revenue Growth and Industry Leadership Recognition Subcribe: Asean Affairs Global Magazine
• China industry expo-Myanmar kicks off in Yangon Asean Affairs Premium
• Investors need actions,not talks: Economists
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• S'pore unemployment remains low in Q3
• Vietnam climate change response reviewed 
Asean Analysis          31 October  2013 Advertise Your Brand
• Asean Analysis- October 31, 2013
Thailand, Singapore score high for expatriate lifestyle
Asean Stock Watch     29 October  2013
• The Biweekly Update 18 October 13 • Asean Stock Watch-October 29

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand