Incentives for investors

It is certainly good to be an investor. Many countries are ready to grant them various incentives and special facilities, including tax privileges and special treatment, to encourage them to spend their money. This is true for Indonesia as well as for many other countries throughout the world.

Perhaps the government had better concentrate on improving services, rehabilitating the infrastructure and ensuring stability before it takes the subsequent step of granting tax and other incentives to investors. Unless those three prerequisites are present, it is pointless to hope that foreign investors will be lured by promises of tax incentives, given the fact that other countries are offering the same deals.

Naturally, we do not want President Abdurrahman Wahid's efforts to be in vain. Though he has been in office for just a little more than a month, the President already has visited quite a number of other countries for the purpose of trying to lure investors -- including even from Israel -- to do business in Indonesia.

Nevertheless, it takes considerable bait to catch big fish. We don't have to make too many lofty promises. The important thing is to provide those prospective investors with tangible proof of our readiness.

-- Bisnis Indonesia, Jakarta