New Investment Law
Parliament has finally deliberated the new investment law in a bid to lure in more investors. But it's not a panacea. Why?
Mini-plenary session of parliament deliberated the bill yesterday and will be brought to plenary session on Thursday for approval. After that, government would have to issue details of rules and regulations based on the new law.
The existing laws (for foreign and domestic investments) have been in place for almost four decades (both laws deliberated by Soeharto regime in 1967 and 1968). The new law will cover both foreign and domestic investments. Despite criticism that the new law is considered too liberal and give more rooms to foreign investors, no quick fix to the country's tarnished image in the investment community.
No doubt about Indonesia's attractiveness for investors in terms of vast natural resources, abundant workforce, and huge domestic market potentials. But to turn these potentials into real economic forces is a delicate issue. Rampant corruptions, hefty bureaucrazy, poor infrastructure, lack of leadership and qualified human resources, and legal uncertainties & law enforcements, are pending issues that need to be solved no matter how soon the new law will be enacted.
Anyway, what's new in the investment law besides the merger of laws on foreign and domestic investment?
READ MORE!!!
Mini-plenary session of parliament deliberated the bill yesterday and will be brought to plenary session on Thursday for approval. After that, government would have to issue details of rules and regulations based on the new law.
The existing laws (for foreign and domestic investments) have been in place for almost four decades (both laws deliberated by Soeharto regime in 1967 and 1968). The new law will cover both foreign and domestic investments. Despite criticism that the new law is considered too liberal and give more rooms to foreign investors, no quick fix to the country's tarnished image in the investment community.
No doubt about Indonesia's attractiveness for investors in terms of vast natural resources, abundant workforce, and huge domestic market potentials. But to turn these potentials into real economic forces is a delicate issue. Rampant corruptions, hefty bureaucrazy, poor infrastructure, lack of leadership and qualified human resources, and legal uncertainties & law enforcements, are pending issues that need to be solved no matter how soon the new law will be enacted.
Anyway, what's new in the investment law besides the merger of laws on foreign and domestic investment?
READ MORE!!!
posted by yosef at 7:29 AM
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