Believe in your country!

I am a businessman and a former diplomat, concerned about investment in Indonesia.

Since the start of President Susilo Bambang Yudhoyono's administration, hopes have been high for increasing the growth rate of the economy in order to create enough jobs to accommodate the increased population and to help reduce poverty. The means by which this is supposed to be achieved is primarily through increased foreign direct investment.

Unfortunately, none of the figures available seem to indicate that this investment is forthcoming at the rate hoped for. In addition, the continuing strongly positive trade balance that Indonesia is so proud of indicates that a lot more capital is leaving the country than entering it.

Indonesians, those that have money, and there are quite a few of them, continue to send their money abroad, for safe-keeping or to invest it there. Indonesian businesspeople, when asked to put up some of their own money to invest in a project or joint venture, will rather turn to the government than take the risk on their own (I speak from personal experience). And turning to the government means delaying a project since the bureaucratic red tape in Indonesia, as has been established recently by an international body, is indeed enormous and intimidating. So why should a foreign investor or venture capitalist come to Indonesia if Indonesians themselves don't want to risk their money?

All the above is well known in the international community and continues to serve as a barrier to foreign investment, without even mentioning other legitimate concerns foreigners may have, for example security or a problematic legal system. If Indonesians are proud of their country and believe in it (as they have every reason to), they should put up at least some of the money. Foreigners are much more likely to invest when they see their Indonesian partners put up some money of their own and take risks.

As a businessman who is interested in advancing agriculture and postharvest processing in Indonesia, I would be happy to meet local businessmen who are willing to take a risk on their own and not run to the government first. They would be surprised how quickly they can get their money back (and make a lot more) if only they dared just a little, and we are talking agriculture here, not gambling.

The government, on the other hand, could make a serious contribution to the economy by increasing the budget deficit from the strangely low 0.8 percent of GDP, which looks like a number right out of the IMF kitchen, and pump more money into infrastructure projects, which are sorely needed to make Indonesia accessible, reduce overland travel times and provide electricity and drinking water to all. All this while curbing governmental bureaucracy, which turns every business venture that involves the government into a long-distance obstacle course.

I urge you, Indonesian businesspeople and government officials alike, believe in your country, invest in Indonesia, we will gladly follow suit.

EMANUEL SHAHAF, Jerusalem