Indonesia is facing significant challenges in attracting foreign\ndirect investment (FDI), despite possessing considerable potential in\nseveral priority sectors such as mineral downstreaming and housing.\nInvestor perceptions of government policy efficiency and infrastructure\nlimitations remain the primary obstacles.<\/p>\n
Executive Director of the Center of Reform on Economics (CORE)\nIndonesia, Mohammad Faisal, stated that although Indonesia holds\nsubstantial potential, structural barriers continue to overshadow\nefforts to increase FDI flows.<\/p>\n
\u201cInvestor perceptions of government policy efficiency and inadequate\ninfrastructure remain the main obstacles,\u201d said Faisal at the CORE\nMidyear event, as quoted by Kontan.co.id on Thursday (24\/7\/2025).<\/p>\n
According to him, to enhance investment attractiveness, the\ngovernment needs to undertake policy reforms and accelerate\ninfrastructure development.<\/p>\n
Faisal emphasised that the mineral downstreaming and housing sectors\nstill hold significant opportunities to attract investors. \u201cThese\nsectors could drive economic growth if managed properly,\u201d he said.<\/p>\n
However, without comprehensive improvements to policy and\ninfrastructure, this potential may not be fully realised.<\/p>\n
Faisal also highlighted that policy uncertainty is a factor\ndiminishing investor interest in investing in Indonesia. \u201cThis\nuncertainty makes investors hesitant to invest in Indonesia,\u201d he\nstressed.<\/p>\n
Therefore, policy stability and transparency in the investment\nprocess are considered crucial to attracting greater FDI flows.<\/p>\n
Furthermore, Faisal noted that Indonesia must be able to compete with\nother countries in the Southeast Asian region that are also vying to\nattract foreign investment.<\/p>\n
\u201cNeighbouring countries are also striving to attract investment by\noffering appealing incentives,\u201d Faisal revealed.<\/p>\n
Consequently, Indonesia needs to create a more conducive investment\nclimate so as not to fall behind in regional competition.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/indonesia-faces-significant-challenges-in-attracting-foreign-direct-investment-1771258296", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }