Thu, 23 Sep 2010
Jakarta (ANTARA News) - Foreign investment made in the country`s domestic market is still smaller compared with that in other Asian countries like Vietnam and Thailand, an observer said.

Stock market analyst Dwi Setiawan said here on Wednesday that the small investment was due to the fact that the Indonesian government was not yet able to meet various demands from foreign investors.

Dwi Setiawan who is also market analyst of PT Valbury Asia Securities said the government still have to improve many matters relating to foreign investment at home.
He said that the government still had no courage to provide foreign investors with incentives.

In Vietnam, the government gave a tax-free facility to foreign investors who wanted to make investment in that country, while in Indonesia, the government hoped its revenues would increase from the tax sector, he said.

If Indonesia granted a tax-free facility its income would decline, he said.

Based on the World Economic Forum (WEF), Indonesia was able to increase its investment rate from the 54th position to the 44th of 132 countries.

This indicated that investment climate in Indonesia was improving and the government should soon carry out further improvement so that investment would continue to flow in, he said.(*)



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