Indonesian ministers rapped over unfriendly investor rules

JAKARTA • Indonesian President Joko Widodo has criticised his ministers for introducing new regulations that discourage investments and are not in line with his push for economic growth.
 

Mr Joko, popularly known as Jokowi, claimed that 23 of the country's new regulations prevented easy investment. "It is a disease. I have said: Don't issue any regulations that could discourage investment. But, they still issue (such regulations). I don't know whether they come from ministers or directors-general," he said during a Cabinet meeting at the presidential office in Jakarta on Tuesday, reported tribunnews.com.

Mr Joko, however, did not specify the ministries or offices that had issued such regulations. But, presidential chief of staff Teten Masduki explained that the 23 regulations were closely related to supporting rules on exports and imports.

He said that the regulations were not included in the economic stimulus packages that had been issued by the government, which included deregulation, investment incentives and less bureaucracy.

Mr Joko called on his ministers and other relevant officials to revise their "problematic" regulations to help the government attract more foreign investment. He said that such regulations may disrupt Indonesia's 5.6 per cent economic growth target for next year.

DOING THE OPPOSITE

It is a disease. I have said: Don't issue any regulations that could discourage investment. But, they still issue (such regulations). I don't know whether they come from ministers or directors-general.

PRESIDENT JOKO WIDODO

Last month, the country's Investment Coordinating Board said Indonesia hoped to attract 863 trillion rupiah (S$90 billion) in foreign direct investment next year, a 27 per cent increase from its target this year, as it vied to become one of the most attractive investment destinations in the world.

JAKARTA POST/ASIA NEWS NETWORK

A version of this article appeared in the print edition of The Straits Times on April 06, 2017, with the headline 'Indonesian ministers rapped over unfriendly investor rules'. Print Edition | Subscribe