The autonomy era demanded each regional government to be independent and creative in finding sources of fund and many opportunities to be made as sources of income for regional treasury. There are many regional regulations and policies formulated in the framework of increasing Regional Revenue (PAD). In general, regional regulations and policies applied by the regional government are not far from taxation matters, retribution, licensing, and bureaucracy services which, internationally or unintentionally, could burden the businesses so that investment lure in the region is low.
Chairman of Indonesian Businessmen Association (APINDO), Djimanto, explained that actually Indonesia is attractive to investors as it has an abundant natural resources and a relatively stable sociopolitical condition. One of the prerequisite for attracting investors, according to Djimanto, is a conducive social-political condition, supported by a government which is pro businesses. With its natural resource richness, Indonesia will be able to attract more investors. The key is that the regions in Indonesia must be able to create a conducive business climate.
But, Djimanto considers that the regional government not yet fully provides an opportunity to investors to improve their businesses. This is proven by the appearance of a number of regional regulations which are not in favor of the businesses. And, there are many businesses who face problems that hamper business advancement in the regions. “Many investors complain about long process of land clearance that it causes investors to withdraw their plan to make investment”, Djumanto said.
Djimanto added, looking at the very limited financial resources in the region, the regional government should make investment a key to regional development. Good investment performance in the past few years should be directed and emphasized on quality, and not just quantity. Competition among countries in luring investors is increasingly tight in the era of transparency of global economic system in the globalization era. Therefore, he said, increase of competitiveness is an absolute requirement to be able to compete in the global economic arena at this time.
Djimanto explained that building a conducive investment climate in the region cannot be released from national and international market information system. Promotion and real support to investment comfort must be created. The regional government and the Regional House of Representatives, according to him, should be aware of the tight competition among regions in luring new investment.
Quality of regional policies and regulations formulated by regional government highly affect investment climate in addition to the existing resources potentials.