Gita Wirjawan, the chairman of the Investment Coordinating Board, has embarked on a tour of 25 provinces to find solutions to problems hampering investment in the regions.
“If we can bring in regional leaders to help solve these problems, we may maximize investment,” he said on Tuesday.
Gita highlighted three traditional problems that discouraged investment: lack of infrastructure, unreliable supplies of electricity and fuels, and unclear and contradictory regional and central government policies.
These problems created a high-cost economy for investors, he said.
The tour was intended to help identify “champion regions” that have succeeded in attracting investment. In February, the winners will be announced and promoted as investment destinations by the board, known as the BKPM.
The International Finance Corporation, the investment arm of the World Bank, last year ranked Indonesia 122nd out of 178 countries in its “Ease of Doing Business” survey, worse than Rwanda. It cited red tape, confusing regulations and problems acquiring land.