Jakarta: Mining and energy observer Ferdy Hasiman has assessed that\nIndonesia will find it difficult to attract investment as long as the\ngovernment fails to address problems faced by investors, namely\ninterference from mass organisations (ormas) and non-governmental\norganisations (NGOs), as well as unclear licensing regulations. He\nwarned that the government\u2019s much-touted downstreaming efforts would\namount to nothing more than a superficial exercise.<\/p>\n
\u201cIt is pointless for President Prabowo to visit country after country\nto convince investors if the bureaucracy and investment rules in this\ncountry are not reformed. Investors want Indonesia to be\ninvestor-friendly \u2014 they have no appetite for disorder. To that end,\ninter-sectoral ministerial egos and the presence of mass organisations\nor NGOs must be eliminated in order to achieve the Asta Cita goals,\u201d\nsaid Ferdy, as quoted from a written statement on Monday, 2 June\n2025.<\/p>\n
The problem of interference by mass organisations and NGOs has been\nexperienced by several companies and investors in Indonesia. Examples\ninclude pressure from mass organisations on automotive company BYD in\nSubang; extortion of tenders by a Chamber of Commerce (Kadin) member\ntargeting Chengda Engineering Co, a contractor for a National Strategic\nProject (PSN) in Cilegon, Banten; nickel-related issues managed by\nIndonesia Morowali Industrial Park (IMIP) in Central Sulawesi; and\nenvironmental impact assessment (AMDAL) problems faced by PT Dairi Prima\nMineral (DPM) in Dairi, North Sumatra.<\/p>\n
Ferdy, who is also a researcher at Alpha Research Database Indonesia,\nurged the government to be more serious in resolving investment\nobstacles, particularly for Chinese investors.<\/p>\n
\u201cThe government must be more decisive in resolving the problems faced\nby Chinese business operators, especially given that China is one of the\nlargest sources of investment in Indonesia,\u201d he explained.<\/p>\n
According to data from the Investment Coordinating Board (BKPM), the\nvalue of mainland Chinese investment in Indonesia reached USD8.1 billion\nduring 2024. Meanwhile, cumulative mainland Chinese investment in\nIndonesia since 2019 has totalled USD36.4 billion.<\/p>\n
He added that problems faced by investors must not be left\nunresolved, as this would frighten them away from investing in\nIndonesia. Furthermore, regulations that are genuinely mutually\nbeneficial for both the government and investors are needed.<\/p>\n
\u201cSince the era of President Jokowi up to now, elites have frequently\nmanipulated laws and regulations solely for their own interests.\nRegulations must be made to benefit many parties, including investors.\nConvoluted regulations and bureaucracy that cause investors to\nreconsider investing in Indonesia must be avoided,\u201d Ferdy cautioned.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/indonesia-will-struggle-to-attract-investment-unless-two-key-obstacles-are-addressed-1771245151", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }