FDI, Investment and Government Policy

One of the main points for investor to invest is law enforcement. Law enforcement covers government policy in investment, taxes, and inconsistency policy and inconsistency decentralization law in investment. In Indonesia, although government tries to repair those investment problems, investor’s hope that government must does more and more to.

In recent, Middle-East Investors would like to put their money in Indonesia, but law enforcement constraints still disturb them. They said that there are many problems in investment, especially, no synchronization from central and local government and inconsistency law and the policies don’t support to investors.

The statement was stated to chief of energy for Indonesian Young Businessmen (Himpunan Pengusaha Muda Indonesia) Erwin Aksa when He was in Middle East. He was there to promote and invite Middle East Investors to invest (put their money) in Indonesia. As the result, Erwin said that Middle East Investors still wait and see where our government policies go to. Middle East Investors prefer to put their money in running companies and buying government projects rather than build a new business (company) because the policy, tax, and other indicators aren’t allowed them. (Build new business needs accurate analysis, and Foreign Direct Investment in Indonesia for new business or company is not good, they thought.) In my opinion, those investors prefer short-term investment and need more liquid capital, if some bad things are happened.

In Erwin mind, Indonesian Government must invite Middle East Richest Investors to put their money here in Indonesia. Indonesia needs huge capital (modal, money) to develop and explore in nature resources like mining sector. Middle East Investors have it. “We need much money, Erwin said.”

Erwin put an example; accorded to him, Middle East Investors demand Alumina as Good in Process (Input) to process Aluminum. In a while, Indonesia export bauxites to them. Why we don’t export alumina to them.

While he was there in Middle East Dubai and Bahrain Investor said that they very interested in Banking Investment sectors. For earlier, they planned to invest around $100 millions USD, but the decision to invest or no, still waiting the Indonesian government policies in FDI sectors.

We hope that government start to repair and renew those policies, supporting investor, so FDI (Foreign Direct Investment) in Indonesia will run well. Once their money enters Indonesia, we get benefits.