Sunday, February 7, 2010

Investment in Indonesia more conducive

Is the investment climate in Indonesia more conducive? This statement should be addressed in a realistic and reasonable professional or not only by the Investment Coordinating Board (BKPM) but also by the Center BKPMD or embassy / RI representatives abroad.
This is because realistically the challenges, opportunities and competition more keen to be able to realize the entry of foreign investment (PMA).
The challenge is always to face Indonesia, including the 100-day post-initial performance of United Indonesia Cabinet (KiB), is the quality of economic institutions that facilitate the rapid and extensive spread the benefits of cultural productivity.
Still many problems in treaty agreements with other countries both in bilateral face, call, JIEPA (Indonesia Japan Economic Partnership Agreement) is proposed by the Japanese since 2003, but only signed August 20, 2007 and ratified in July 2008 for implementation.
In addition, the agreement states a free market society views China Southeast Asia (ASEAN China Free Trade Agreement / ACFTA) with effect from January 1, 2010, the process until an agreement has agreed since 2001.
By engaging in real entrepreneurs with mature plans and programs, including public relations pemuktahiran facilities (public relations), to team work (team work) and network (networking) worked out in terms of the various shortcuts the time of initial
until the determination of the application requires a set of clear information, such as tax holidays are clear (there or not), organizing permits, and utilization of information technology, especially Internet facilities.
With the observation that grows in East Asia, then all parties should have an understanding that since the early 1990s paradigm has emerged that the export-oriented industrialization is a better strategy and not to export raw materials rather than import substitution.
Indeed the strategy of export orientation by warriors economists and policymakers originally considered economic development does not make sense (unthinkable). Stages and types of industrialization policy which was introduced the following classification:

   
1. The first stage of import substitution (Import Substitution 1 / IS 1), to produce consumption goods; protection rules applying to develop the industry grows,
   
2. The second stage of import substitution (import substitution 2 / IS2), to produce valuable goods and consumer guides,
   
3. Export orientation of the first stage (Export Orientation 1 / EO1), with production-oriented labor-intensive goods for the enterprise-scale producers of goods lightweight,
   
4. Export orientation of the second stage (Export Orientation 2 / EO 2) and the export orientation of the complex (Complex 2 Export Orientation / EO2-complex), to produce technology-laden goods / capital-intensive knowledge-based industries, to develop service industries - especially financial, and restructuring technology running.

Fourthly it is recorded in detail Edward KY Chen (1988) in "The economics and Non-Economics of Asia's Four Little Dragons", at the University of Hong Kong, then he memantapkannya in 1997 in "The Asian Model of Economic Development: Policy Implication for the 21st Century" Institute of Developing Economies' Tokyo , Japan).
One wanti-wantinya Chen is about international trade, and especially the movement of factors (factor movements) that depends on what he calls the hardware and software related to international issues. Hardware side, including transportation and communications infrastructure necessary to coordinate production and trade activities.
For Indonesia warned Chen not seem to be realized by doing "leap without experiencing sustained growth". Therefore, Indonesia needs to adopt an appropriate set of policies as a condition / conditions that are important to the success of the process of economic development.
Pernting conditions is an institutional framework that encourages a variety of policy by recognizing a number of institutional factors, such as culture, especially political culture.
In addition, various groups in this country need to examine the linkage between trade and investment in micro-economic level (Microeconomic level) very carefully in the interest of investors in the sense that the trade creation effect is driven by the investment.
The nature and form of inter-networking company that is the estuary of the growing investment: the beginning of "parent-subsidiary" which is a vertically nature and form of interest.
Later in the development of a mutually supportive experience became less are to be inter-affliliate with greater autonomy by the company's subsidiaries belonging to the company.
On the Government side, BKPM and the relevant agencies and local support BKPM need constantly to improve the investment to develop stratetgis step with Capital Investment Law the new regulations.
As a state law, then the set of rules set out in the form of law to be an absolute prerequisite. In the investment world of legal certainty which is not easily interpreted by officials unilaterally should be the reference.
Some neighboring countries like Malaysia, Thailand and Vietnam are heavily attract potential investors, among others, expressly provide tax incentives, the efficiency of management time management of a residence permit investors to the country of origin plus an attractive value for investors.
In general, investment opportunities for foreign investors in Indonesia are many. However, it does not mean all inaccessible areas of foreign investors. There are several business sectors that are still closed to them. Consideration, the government intended to protect the perpetrators for the field logal certain areas.
Any investor interested in entering the funds necessary to understand the signs. So there still exists dni (Investment Negative List) that can be obtained at the BKPM.
Natural resources in Indonesia is still the main attraction compared to other countries of ASEAN in the position of natural resources and human resources. In fact, the state should benefit from quality improvement infrastructure readiness, people, knowledge, and physical.
However, today it is still not prepared to meet the need for professionalism and good quality of public governance in the investment services to uphold the rules as stipulated in the Law on Capital Investment.
Mobility of capital and technology to dramatically menguubah how various countries into the global production system flow. For developing and developed countries such changes bring change risks and opportunities.
For Indonesia as a developing country opens the opportunity to participate in regional and international production by increasing employment opportunities and purchasing power. But, resikopun may arise from the weakness of policy and direction of regional economic phenomenon.
Drove the market environment encouraging innovation, specialization and product differentiation. Here the new environment needed flexibility in terms of economic policy on the basis of win-win (win-win) is reasonable. Ready to party with a single customs window, especially professional services in the areas of official duties and responsibilities of the role of fluency in customs?
Investments are expected to not be used hidden means traffickers to strengthen the rights and privileges of assets or assets that have been accepted by the investor.
Therefore, the precision necessary in the negotiation implementation potential, especially in areas such as Special Economic Zones (KEK) are planned realization by Indonesia in various areas.
On the one hand the interests of the negotiators of expertise Indonesia with the support of a team of experts in formulating the conditions following the agreement of the echelon of professional competence medium (middle management) in the central office or (embassy) and the region as the proceeds practice a challenge in creating a one stop service in this country . These are real challenges. (
Bob Widyahartono M.A )

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