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Indonesia jumps six spots to 68th in global economic openness index
The study focused on four aspects the institute considers key to having an open economy, namely market access and infrastructure, investment environment, enterprise conditions and governance.
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Office buildings in Jakarta. (JP/Ricky Yudhistira)
I
ndonesia has risen six places over the last decade to be ranked 68th out of 170 countries in the Global Index of Economic Openness as shown in a recent study by a London-based think-tank the Legatum Institute.
The study focused on four aspects the institute considers key to having an open economy, namely market access and infrastructure, investment environment, enterprise conditions and governance.
The institute’s policy director, Stephen Brien, said the country had improved across the board, with the report pointing to an improved investment environment and easier procedures for business creation as the most notable.
Indonesia’s investment environment soared to 53rd position, rising 34 places since 2009, on the back of improved patent laws and relatively better investor protections. However, Brien said Indonesia needed to lower its protectionist measures.
“Indonesia’s restrictions on international investment are more extensive than many other countries and it still has a negative investment list (DNI), which hampers foreign investment flow, although the President said it is being revised,” he said at the Investment Coordinating Board (BKPM) office in Jakarta on Tuesday.
President Joko “Jokowi” Widodo planned to relax the DNI by revising presidential decree No. 44/2016, which is aimed at opening up more business sectors to foreign investment.
The government has unveiled plans to open up 49 economic sectors by allowing foreigners to hold larger shares or by freeing investors from having to obtain recommendation letters.
