RI's investment climate remains poor: Chamber<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The country's investment climate remains in a poor condition
\ndespite claims by the government that it has carried out various
\nreform measures as set out in the White Paper, according to the
\nIndonesian Chamber of Commerce and Industry (Kadin).<\/p>\n
\"The monitoring committee (of Kadin) opines that the most
\nalarming condition is in regard to the investment climate,\" Kadin
\nsaid in a press statement, adding that weak export performance,
\nstaggering unemployment and lingering labor issues were also a
\nconcern.<\/p>\n
Kadin has set up a committee tasked with monitoring the
\nimplementation of government economic reform programs designed to
\nhelp maintain confidence in the economy after the country ended
\nthe International Monetary Fund-sponsored program late last year.<\/p>\n
There are 35 action plans in the White Paper ranging from
\nmonetary and fiscal policy to improvement of investment, exports
\nand employment.<\/p>\n
On Thursday, Kadin released for the first time the result of
\nits five-month monitoring work.<\/p>\n
\"Although the government claims that it has implemented
\nvarious programs in these areas, but in the field, there has been
\nno visible improvement at all,\" Kadin said.<\/p>\n
It said that reports of higher investment figures was only
\nrelated to approved projects, not realized investments. This is
\nevident from the fact that imports of machinery remains slow.
\nHigher imports would suggest brisk investment activities.<\/p>\n
Investment has been scarce over the past couple of years due
\nto various problems at home, including rampant corruption, legal
\nuncertainty, poor implementation of regional autonomy and
\nlingering labor conflicts. The country needs to boost investment
\nactivities in order for the economy to grow much faster than the
\npast years' meager growth rate of around 4 percent in order to
\ncreate employment.<\/p>\n
Kadin also said that the hard gained stability in
\nmacroeconomic indicators had failed to translate into brisker
\ninvestment activities.<\/p>\n
It added that the weak investment climate had also affected
\nthe country's exports, as it weakens the competitiveness of the
\ncountry's manufacturers and discourages exporters from investing
\nin new machinery.<\/p>\n
\"The performance of non-oil and gas exports is very
\ndisappointing as they grew by less than 4 percent last year,\"
\nKadin said, adding that the problems were not limited to trade
\nissues but also included low investment in the export sector and
\nthe poor competitiveness of local industries.<\/p>\n
Exports are also seen as a key factor to boost the economy,
\nwhich in the past few years had been largely driven by domestic
\nconsumption.<\/p>\n
\"All of these (problems) cause an increase in unemployment,
\nwhich has already reached 10 percent of the workforce,\" Kadin
\nsaid.<\/p>\n
Kadin did not specifically say what measures should be taken
\nby the government to address the problems, but it warned the
\ngovernment that tax and labor issues were among the problems
\ndiscouraging investment.<\/p>\n
\"The tax policy, which focuses on revenue, does not create a
\ngood business climate,\" Kadin said, adding that the policy should
\neliminate gray areas in Tax Law to improve legal certainty.<\/p>\n
The government early this year amended Tax Law, which was part
\nof the government's key economic reform measures.<\/p>\n
The amended Tax Law is aimed at boosting state revenue.<\/p>\n
Kadin also criticized the government's labor policy,
\ndescribing its as \"filled with irrationality\".<\/p>\n
While there is a tendency for the government to interfere too
\nmuch in labor affairs, it has failed to complete crucial
\nregulations, Kadin said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ris-investment-climate-remains-poor-chamber-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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