No Oil Painting

Sep 18th, 2006, in Business & Economy, by

Indonesia is no oil painting, in terms of its attractiveness as an investment destination, according to many, while the government sets the date for the passing of the new investment bill.

The investment climate is still not too good and corruption is the main obstacle in investing.

Said the Executive Vice President of the International Finance Corporation, Lars Thunell. He acknowledged that the government had taken some steps to combating corruption but said that in international eyes the country was still seen in a poor light.

It's very important to change the perception of foreign investors.

He added that the process for aquiring investment permits had to be simplified. The authorities had already reduced the time needed to gain a permit from 150 days to 90 (Doing Business)but more progress was required.

He said that infrastructure projects also needed to be embarked upon and said that the IFC was ready to invest in this area. Thunell made these remarks in a two-day visit to Jakarta in which he met with vice-president Jusuf Kalla.

Meanwhile Industry minister Fahmi Idris said that the "Rancangan Undang-Undang Investasi", the proposed new investment law, would be completed by November of this year. The speeding up of processing the bill was being done, he said, a part of the committment to redressing some of the negative perceptions mentioned above.


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