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European investors unimpressed by economic stimulus packages: Survey
Regulatory environment and bureaucratic inefficiency remains the top two investment challenges, like last year.
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Sustainability is key: European Union Ambassador to Indonesia and Brunei Darussalam Vincent Guérend (left), Wilistra Danny, who heads the Indonesia Sustainable Palm Oil (ISPO) strengthening team at the Office of the Coordinating Economic Minister (second left), Tenggara Strategics executive director Riyadi Suparno (center), Unilever Indonesia sustainable sourcing manager of Rauf Prasodjo (second right) and Environment and Forestry Ministry official Budiharto are pictured during the Working Together for Sustainable Palm Oil discussion held by Eurocham and the EU in Jakarta in September, 2018 (The Jakarta Post/Wendra Ajistyatama)
E
uropean investors are still unimpressed by a number of fiscal incentives included in a series of economic packages issued by the government last year, though in general, they remain confident about the prospects of doing business in Indonesia.
According to the Joint European Chambers’ 2019 Business Confidence Index (BCI), 60 percent of respondents are still upbeat about Indonesia’s business momentum. The figure is slightly lower than 62 percent last year.
Significant improvements were recorded in several aspects. For instance, 35 percent of respondents are confident about the political environment, double than last year at 17 percent.
The confidence over regulatory environment and labor policies also increased by seven percentage points, each to 23 percent and 18 percent, respectively.
“The confidence in investing in Indonesia is still very high, and we are hopeful that with a new government and regulatory framework, the business environment will continue to be favorable so that sustainable investments from European businesses from Indonesia will continue to grow,” Corine Tap, chairwoman of the European Business Chambers of Commerce (EuroCham), said on Friday.
However, despite the survey’s positive sentiments, investors were not impressed by the economic stimulus provided under a series of economic policy packages implemented by the administration since early last year.
The regulatory environment and bureaucratic inefficiency remain the top two investment challenges like last year, with 78 percent and 75 percent of respondents worrying about those aspects.
