RI-Japan economic meeting spells out problems
RI-Japan economic meeting spells out problems
The Jakarta Post, Jakarta
A one-day meeting between the government and a visiting Japanese
delegation on economic and investment issues earlier this week
concluded without a firm action plan to solve investment
problems.
Ministry of Foreign Affairs Director for East Asia and the
Pacific Hamzah Thayeb said that the meeting was just a
preliminary one, aimed at identifying Indonesia's problems in
attracting investors.
"We've tried to identify what our problems are and we took
notes on what they think the main problems are," Hamzah told The
Jakarta Post on Wednesday.
Based on the discussion, he said that the problems hampering
investment were conflicting regulations, high import tariffs,
poor infrastructure and labor demands.
Hamzah said that they also discussed the possibility of
additional grants from Japan.
The meeting on Monday was chaired by Ministry of Foreign
Affairs Director-General for Asia and Africa Makarim Wibisono.
The Japanese delegation was led by Japan's deputy foreign
minister Ichiro Fujisaki.
Previously, a diplomat at the Japanese foreign ministry was
quoted as saying that the outcome from the meeting would likely
be in the form of a recommendation or a list of action plans to
be carried out by relevant ministries or agencies.
Hamzah, however, said that a second meeting would hopefully
settle on some action plans and recommendations from the Japanese
delegation to find solutions.
"We don't know yet when we'll hold the second meeting, but
hopefully we'll have some concrete resolutions," said Hamzah.
Various bilateral discussions and public seminars have been
held over the past few years and similar issues were pointed out,
yet no strong action seems to have been taken by the government
and thus foreign investment remains weak.
Asked if the meeting had been fruitless, Hamzah simply
reiterated that the meeting was only a "preliminary" one.
"Well, I wouldn't say it was fruitless. The fact that we sat
there together to figure out ways to boost investment into our
country and advance our economic cooperation with Japan was a
good start," he asserted.
Foreign investors have frequently cited the lingering problems
of conflicting laws, labor disputes, poor infrastructure and
legal uncertainty as the key contributors to Indonesia's
unfavorable investment climate.
Japan has been a long-time major investor here. The latest
data from the Investment Coordinating Board (BKPM) shows that
during the first seven months of the year, Japanese investors
topped new investment approvals in Indonesia.
Around US$916 million worth of new investment approvals from
Japan were recorded, accounting for some 28 percent of total
approved foreign investment.