Indonesia needs to further reform its investment regulations so it can attract more foreign investors amid changes in global trade trends, experts have said.

The shift in global trade trend as a result of the COVID-19 pandemic, trade conflicts between the United States and China and growing nationalist sentiments could lead to a rise in investment outflows from major economies such as China to developing countries, they said.

Indonesia should further reform its investment regulations so that it can attract foreign companies that would want to further diversify or relocate their investments from China due to the change in global trade trends, said Center for Indonesian Policy Studies (CIPS) researcher Andree Surianta.

“This pandemic has highlighted Indonesia’s economic vulnerability. Indonesia needs to push its regulatory reform agenda. While the omnibus bill is a...