Indonesia still has a long way to go to compete with the likes of Singapore, says the head of the national investment body.
Muhammad Luthfi, the head of the Badan Koordinasi Penanaman Modal (BKPM), speaking in respect of the poor ratings given to Indonesia in the Doing Business 2007 report put out by the World Bank recently, said that Indonesia remained unable to match the conducive business climate as existed in countries such as Singapore, in terms of their ability to speedily process and approve new investment projects.
They are clearly much quicker than Indonesia. Other countries are a step ahead of us.
(Mereka jelas lebih cepat dari Indonesia. Negara lain selangkah lebih maju.)
Luthfi went on to say that the government was committed to carrying out reforms to streamline the approval process for foreign investment permits and he was confident that the level of foreign investment would increase due to these measures.
He also said that the example of Batam, a special economic zone,
would be imitated by other regions. Batam, he said, had succeeded in reducing the time needed to process investment permits from 151 days to 97.
Meanwhile the Economy minister, Boediono, said that the government would take on board the results of the World Bank survey and would keep striving to improve the investment climate. When questioned on the poor scoring of Indonesia in the survey he re-iterated that Indonesia was focused on making it easier for investors to enter the country and also made mention of the Batam success story.
It has already begun in Batam, that's a good sign.
(Dan itu sudah dimulai di Batam. Itu pertanda baik.)
According to BKPM statistics the level of foreign investment in Indonesia in the first half of 2006 was to the value of $3.7 billion, falling from $4.9 billion in the same period last year. The value of domestic investment however saw an improvement, rising from 9.61 trillion rupiah in the first half of 2005 to 11.46 trillion this year.