"The government has made a quick adjustment to encourage domestic consumption as well as to ensure a favorable investment environment. Bureaucratic simplification as well as deregulation of hindering regulations have been conducted to ensure market competitiveness," Kartika noted during the Indonesia-Panama business forum webinar late on Thursday (Dec 10).
"The Indonesian government had also built 15 special economic zones. Each economic zone is specialized and built for specific industries [...] which offer more regulatory relaxation as well as attractive packages of investment incentives, such as tax holidays and tax allowance," she added.
Furthermore, the ministry encourages Indonesian firms to also pursue international engagements and expansion for their businesses, including to Panama, as vehicles apart from railway and tramway were listed for the top exported items to the American country.
Align with today's circumstances for recovery of the economy battered by the COVID-19 pandemic, Kartika noted, adding that the government had recently enacted the Omnibus Law on Job Creation last month to promote economic development, trade, and investment. "It also significantly improves the ease of doing business and investment in Indonesia," he noted.
Indonesia’s Investment Coordinating Board (BKPM) recorded that based on the World Bank's Ease of Doing Business (EODB) 2020, Indonesia’s ranking had improved, climbing from 120 -- out of the 190 economies in the world -- in 2014 to 72 in 2018 while slightly decreasing to 73 in both 2019 and 2020.
During the same webinar, Diono Nurjadin, head of the Americas at the Indonesian Chamber of Commerce, drew attention to some pros, such as the Indonesian demographic bonus and strong reform commitment, for the American, particularly Panamanian investors, to conduct their businesses in this country.
"Indonesia’s population is the fourth largest, and the most relevant part of the population is that 60 percent comprises those of the working age group. Hence, it represents the very sizeable 500-billion dollar market," Nurjadin remarked.
"I think the reform agenda is very crucial in improving the business climate, and the current administration has been very firm and committed to strong institutional, regulatory, as well as fiscal reforms," he added.
According to the official data of BKPM, Panama’s investment in Indonesia recorded a marked improvement in 2018 at US$100.71 million, from US$3.88 million a year before. (INE)