"Several German companies are concerned about the very difficult bureaucracy in Indonesia," said Witschel in an interview with Antara here on Monday.
According to him, although the Indonesian Investment Coordinating Board (BKPM) has managed to shorten the process of foreign investment applications, the procedure of applying for investment permits in several regions in the country is still complicated.
However, he added that Indonesia could resolve the problem by simplifying bureaucracy to attract more foreign investors.
"Another obstacle is poor sea infrastructure as the companies have to distribute or transport goods from island to island," he said.
Witschel noted that sea transportation in Indonesia is often too slow as the country has a few deep seaports to accommodate tall cargo ships.
"Another very important point is the average school attendance in Indonesia is still low so skilled workers are less good developed than the number of other Asian countries," he said.
In addition, Witschel said the increase of minimum wages may be a disincentive for several industries in Indonesia. (B019/S012)
Editor: Kunto Wibisono
Copyright © ANTARA 2013
