To anticipate global economic crisis, it was important for Indonesia to
reform investment climate to solve the problem of export downturn. For that
matter it was necessary to cast aside all investment obstacles. The first
obstacle was weak law enforcement. Other obstacle was poor infra-structure,
which affected business operation cost. Investment would flow in to the regions
if basic infrastructure were adequate. Other obstacle was the so many
complicated regulations which held back development.
The Director for institute for development of economics and finance
[INDEF] Enny Sri Hartati state in Jakarta on Tuesday [21/5] rhat many regional
regulations stagnated development of entrepreneurs in Indonesia. Other hindrance
was that banks which could not reach the informal sector. According to Enny,
banks needed to render financial service, for big or small business. The last
hindrance was lack of trained experts, which was the hindrance of middle and
big business. In this case it was necessary to from a private forum and the
government to crack all problems in investment.
Somehow investor’s zest to invest in Indonesia was still high. Enny saw
that high investment Indonesia lately was on account of global crisis.
Investors tend to play it safe by investing in countries where economic growth
was relatively favorable. Indonesia was one of the countries with abundant
resources and good economic growth. Investors tend to play it safe by investing
in countries where economic growth was relatively good. “Direct investment
could grow by 30% today” Enny said.
Enny said that infra-structure outside java was today most
disheartening. Mist of the investment entering Indonesia were the type of
investment that was aimed at the domestic market. The result of the high
investment value was not synchronous with the added value resulted for the
domestic industry. According to Enny, improvement of the infra structure was
most pressing need in regions where growth of downstream industry was prevalent
such as the CPO or rattan industry.
Beside Enny saw that bureaucracy was still a serious problem which
hindrance investment In Indonesia. On of the obstacles was complicated produce
in permit application. According to Enny, the complex bureaucracy would
stagnate investment process in the regions. This means enormous loss,
considering that Indonesia now adopted decentralization of government. She said
that by decentralization the focus of development process was in the regions
which held enormous potentials.
Investment process in the regions according to Enny was not maximized as
there were many regional regulations which was not in parallel with the spirit
of creating favorable climate for investment. Therefore betterment as necessary
to build healthy economy of the regions, through the process of one stop
service had been proclaimed for long by the government. Bad bureaucracy in
permit application in the regions was still seen as stagnator to investment.
Provincial governments needed to collaborate in developing investment
potentials in the respective regions. It was mentioned that the provincial
government could synergize in scheming up plans, promote development, and
enhance potentials in investment based on data and information; and to
facilitate joints promotions in investment while the benefactors could step up
human resources capacity in permit issuance service. Meanwhile data of BKPM
mentioned that investment in the industrial sector over the period of January-September
2012 was Rp.38.11 trillion for domestic investment and USD 8.9 billion for
foreign investment. (SS)
Business News - May 24,2013
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