POOR INFRASTRUTURE STILL POSE AS HANDICAP TO INVESTMENT

Responding world’s economic crisis, Indonesia needed to reform investment climate and concentrate so solving export downturn. Pursuant to that matter, hindrances to investment must be reduced, among other to improve infra-structure which were inadequate. Bad infrastructure increased production cost, which increased cost as a whole. Investment would flow in to the regions if basic infrastructure were supportive to the masterplan. This was the statement of the Chairman of the Indonesian Chamber of Commerce (KADIN) Indonesia, Suryo Bambang Sulisto in Jakarta (19/11).

Suryo expressed his grievances about bad infer-structure which would hold back investment process in Indonesia. Yet today the world’s atten­tion on Indonesia was overwhelming. Many coun­tries praised Indonesia’s achievements in economic growth, but if the condition was not safeguarded and Infra-structure was riot improved Indonesia would miss golden opportunities. “We must spur on infra structure development to drum up foreign investors” Suryo remarked.

According to Suryo, the high investment flowing in to Indonesia today was due to the global crisis factor. Investors tend to play safe by investing in countries where economic growth was favorable. In addition to that Indonesia also had comparative advantage in terms of natural resources, population, and political stability. That was why investment of the Direct Investment type rose to 30% today. However, infra structure in Indonesia was a handicap mostly complained about in business for a between Government of RI another countries over the past 5 years or so.

Infra-structure building was a pressing necessity in regions where downstream industry activities were prevalent like CPO industry centers or rattan, let’s say in Sumatra or Kalimantan. Therefore the Government’s homework was not just to drum up and direct investors, but also to prepare all the facilities.

Suryo sew that to render one-stop service in capital investment (PT SP-PM) in the regions would not mean anything without improvement in infra­structure quality. Suryo praised quality improvement in PISP-PM in regions which continuously improved. He rated that the betterment of PTSP PM also helped to build a climate conducive to investment so there would be more investors investing their capital in Indonesia. “The development of investment and regulations were recently quite favorable because our investment climate is getting better” Suryo was quoted as saying.

According to Suryo, investors demanded continuous improvement of investment climate. For that matter he celled out all parties to work hard. Suryo explained that from the investment side, the indus­trial sector in the period of January-September 2012 Domestic Investment (PPADN) came to Rp 38.11 tril­lion or increasing by 40.1% against same period be­fore. Meanwhile Foreign Investment (PMA) reached USD billion or Increasing by 65.85%.

Business News - November 23, 2012