Jakarta (ANTARA News) - The Asian Development Bank (ADB) has urged Indonesia to improve its investment climate to reach its projected economic growth of six to seven percent, ADB Vice President Lawrence Greenwood said in Jakarta on Wednesday.
The improvement includes project readiness, change in the Indonesian government`s ways of thinking, consistency in regulation implementation, and market demand adjustments.
He said that the things which have the strongest attraction to investors include readiness in the realization of projects, such as information and data on the projects, in addition to project planning and adjustment to international standards.
"Investors are often facing lack of or inadequate information on projects," he said when speaking in the Indonesia Infrastructure 2006 forum at the Jakarta Convention Center.
He also said that the government also needed to change its ways of thinking and get used to the proper preparation of projects, tenders, and complex negotiations.
He also said the government has yet to place cooperation between the private sector and the government as the main agenda. The cooperation, he added, is an integrated part with the government`s overall agenda.
Greenwood also suggested that the regulations the Indonesian government has issued should be applicable to each investor sector. The principles which the regulations must have include legality, project quality, transparency and fair competition.
"Clear-cut and consistent regulations as well as those principles will provide a crystical clear picture to investors," he said.
He also said that the main challenge facing the Indonesian government had been bringing about a conducive climate for investment as a whole, such as a climate which meets market demands, which are easily predicted, low transaction cost, and fair repriprocity.
To achieve all those aims, it would be necessary to conduct reforms which will create competition, clear regulations, and ways to reach effective solutions.(*)