Foreign investors 'need level playing fields'<\/p>\n
Riyadi Suparno, The Jakarta Post\/Jakarta<\/p>\n
Harassing foreign investors is never a good thing, moreover in
\ntimes of a poor investment climate. The best advice would
\nprobably be to offer fair treatment and a level playing field.<\/p>\n
According to U.S. Treasury Assistant Secretary Randal K.
\nQuarles, the protracted battle between the government and Karaha
\nBodas Company over the former's compensation payment to the
\nlatter, and between the police and PT Newmont Minahasa over
\nalleged pollution by the latter, could send wrong signals to
\ninvestors in general and deter their return.<\/p>\n
\"They are all causing concerns. I think these sorts of issues
\nare deterring investment in Indonesia, and these are the sorts of
\nthings that need to be addressed,\" Quarles told journalists here.<\/p>\n
When asked if he raised Newmont and Karaha Bodas cases during
\ntheir meeting with Indonesian officials, Quarles said: \"As
\nexamples, we raised some specific issues that raised concerns.
\nBut, it's not the topic of any of our meetings.\"<\/p>\n
Not only those cases, Quarles said, investors were also
\ndeterred by other issues such as high-profile and unfavorable
\ncourt decisions, corruption, conflicting regulations, and tax
\nadministration issues.<\/p>\n
\"If foreign investors are to begin investing in Indonesia
\nagain,\" Quarles said, \"they are going to have to be confident
\nthat they will face a level-playing field, a level playing field
\nin judiciary, in regulatory systems and in general availability
\nin business opportunities.\"<\/p>\n
Bringing back investors to Indonesia was a challenge for the
\nnew government, Quarles said, noting that foreign investment was
\nbadly needed to bring economic growth back to the pre-crisis
\nlevels.<\/p>\n
Indonesia has been suffering negative foreign investment since
\nthe crisis, meaning that there has been more capital outflows
\nthan inflows into the country.<\/p>\n
During his visit here, Quarles met with Bank Indonesia
\ngovernor Burhanudin Abdullah, Finance Minister Yusuf Anwar,
\nMinister of National Development Planning Sri Mulyani Indrawati
\nand members of the House of Representatives' Commission XI on
\nfinance and banking.<\/p>\n
Quarles commended efforts by the new government to review
\nconflicting regulations between the center and local governments
\nand reduce bureaucratic obstacles, which could be the first step
\nin addressing Indonesia's bleak investment picture.<\/p>\n
\"We look forward to the government continuing to dedicate its
\nfull energy to all aspects of improving the investment climate so
\nthat it will succeed,\" he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/foreign-investors-need-level-playing-fields-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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