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View all search resultsThe Investment Coordinating Board (BKPM) and the Indonesia Stock Exchange (IDX) signed on Tuesday a memorandum of understanding (MoU) that will enable the bourse to guide both foreign and domestic businesses to conduct initial public offerings.
The full scale of United States investment in Indonesia is not often evident from official government figures. Statistics from the Investment Coordinating Board (BKPM) only attributed US$7.78 billion worth of investments to the US from 2013 to 2017. This is far from a complete picture.
The new Investment Coordinating Board (BKPM) chairman, Bahlil Lahadalia, has shared his vision that domestic investors should overtake foreign investors, as Indonesia booked a 12.3 percent growth in realized investment in the January-September period of this year from the same period last year, led by gains in domestic investment.
Given its huge economy and labor force, Indonesia should be getting the lion’s share of investment moving out of China. But it isn’t. The new administration should acknowledge that Indonesia can learn from its regional neighbors, starting with its mindset toward foreign investment. Too many officials treat foreign investors with a “they need us more than we need them” attitude or assume that companies cannot afford to overlook Indonesia because of its market size. This mentality must change.
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