Brave predictions that Indonesia would emerge as the “Middle East of Biofuel” have evaporated. The industry faces testing times and opening the local market appears the only way to survive. Biofuel went big globally with a slick public relations package in 2005. With a mix of environmental concern and business savvy it pushed a convincing argument that “greening Indonesia” was the way to go. Biofuel was the answer to plunging oil stocks, cutting pollution in traffic-choked cities.

The recent Indonesia Regional Investment Forum 2008 brought together more than 200 international investors with a shared objective: to explore investment opportunities in one of the fastest growing economies in Asia. They liked what they heard: a number of them told GlobeAsia they have serious intentions to invest here. Fouad Hayel Saeed as been extremely busy shuttling betweeen Kuala Lumpur and Jakarta these past few months.

PETALING JAYA: When domestic growth dwindles or when a company plans for expansion, going overseas seems like a smart move. For Malaysian companies, Indonesia presents good opportunities because of its large population, low labour cost and vast natural resources. But Indonesia is not the easiest place in the world to do business because it has a high level of regulatory risk.