Investment year 2003

Investment year 2003

From Bisnis Indonesia

The government move through the Investment Coordinating Agency (BKPM) to declare 2003 "Indonesian Investment Year" can be approached with pessimism and optimism.

The pessimistic approach considers this year a difficult period to attract investment because, first, price hikes have increased production costs; second, security conditions are uncertain on the eve of the 2004 general elections; and third, there is tough competition from China, Vietnam, Thailand and Asia.

These conclusions were released by various foreign institutions such as the Japan International Cooperation Agency (JICA) and the International Country Risk Guide (ICRG).

In fact, investments are very important for Indonesia's economic growth, because constant growth will provide job opportunities. Under current circumstances, the idea of BKPM Chief Theo Toemion to launch Indonesian Investment Year 2003, as already announced by President Megawati, deserves support.

By the optimistic approach, it is deemed necessary to boost the investment spirit despite unfavorable domestic conditions. It is the duty of the government as well as legislators to make Indonesia the choice of foreign investors. BKPM should also try to woo local investors so that they, too, will contribute to economic growth.

RETNO AMBAR RIYANI Cilacap, Central Java