Officials of the Indonesian Chamber of Commerce and Industry (Kadin) have expressed concerns that Indonesia could be surpassed by Indochinese countries in developing their business climates, unless Indonesia manages its economy well.
"If we are not serious, Indochinese countries, which are also ASEAN members, could surpass Indonesia in developing their domestic business climate," Kadin Chairman Erwin Aksa said in a press statement made available to Antara here on Saturday.
Countries that could be categorized as Indochinese nations are, among others, Vietnam, Laos, Cambodia, Myanmar and Thailand.
In a survey on Doing Business 2014, compiled by the World Bank, Thailand was listed as having rapid economic development and was ranked in the 18th position, while Vietnam was ranked 99th on the list.
"Vietnam has left us far behind," Erwin said, referring to Indonesias 120th position on the list. Indonesia only surpassed Cambodia (137), Laos (159) and Myanmar (182).
He said that the success of Vietnam in overtaking Indonesia was thanks to its efforts to protect investors and improve its taxation regulations.
Erwin stated that if other Indochinese countries were also able to overtake Indonesia, it would become a very bitter experience. "After all, these countries have just come out of conflicts and wars in the 1980s and began developing their infrastructures only after 1990," he said.
"It would be an ironically bitter fact for us, as a large country with huge resources, if we are not able to build our infrastructure. While in fact, our political and economic stability is far better" than other countries, he noted.
Kadin also put the spotlight on the labor problem in Indonesia, which it said would weaken the competitiveness of Indonesias businesses, if not settled properly.
It is predicted that foreign investment prospects in Indonesia in 2014 will not change significantly. Moreover, a legislative and presidential election will be held next year.
"Although Indonesia is facing a political dynamism next year, foreign investment prospects will not change significantly," Kadin Deputy Chairman for trade and international relations, Chris Kanter, said.
According to Kanter, next years foreign investment condition was still expected to be relatively positive, though it would be affected by the change in government.
In the meantime, President Susilo Bambang Yudhoyono said in West Sumatra on Tuesday that putting into action the Master Plan for Acceleration and Expansion of Indonesias Economic Development (MP3EI) projects has involved investments of Rp737.9 trillion.
"What we had decided in 2011 at Cipanas Palace, Bogor, has yielded concrete results. Up until the groundbreaking ceremony yesterday, the current investments has reached Rp737.9 trillion," he said when chairing a limited coordinating meeting on food security at Bung Hatta Palace in West Sumatra.
The MP3EI project plans are real and concrete, and not just writing on paper, he said.
The president thanked the governors and business community for the projects becoming a reality due to cooperation between the central government, local governments and business community, he added.
Sources : Antaranews
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