Indonesia Expat
Business/Property News

Foreign Investors Struggle with Indonesia’s Economic Policies

Foreign investors are reportedly dissatisfied with the Indonesian government’s efforts to facilitate international business opportunities.

Earlier this week, the Foreign Ministry gathered foreign business communities and ambassadors to discuss the progress of their business activities. While attendees continue to show respect for Indonesia’s  economic policies, some of them feel that the nation must provide better services for foreign companies.

In the diplomatic chambers of commerce meeting, company executives disclosed a number of challenges commonly faced by their firms. Common conundrums are primarily related to tax, the predictability of regulations and work permits – which according to Head of Investment Coordinating Board Thomas Lembong remain as the top concerns from foreign investors.

President Director of Japan External Trade Organization Daiki Kasugahara revealed that the recent changes in tax procedures have hindered operations for his and other Japanese companies.

Other members including UK Ambassador to Indonesia Moazzam Malik also spoke out on the complicated work permits that foreign businesspeople must deal with, as they are required to extend permits every six months.

Responding to these complaints, Indonesian representatives during the event assured them that the government will continue to find ways to create a better environment for foreign businesses. Government officials are currently planning on revising tax laws like the General Taxation Law so foreign businesses will have better chances of growing in the archipelago.

Despite these issues, some members did acknowledge the nation’s improvements due to the 13 economic packages. Swedish Ambassador to Indonesia Johanna Brismar Skoog was happy to find her companies doing well while complying with the economic policies.

“Tangibly, I get fewer complaints from my companies, so that’s a sign of improvement. I also see that the goodwill and efforts to resolve the problems are there. I think things are really improving,” said Johanna Brismar Skoog as quoted by The Jakarta Post.

Featured Image via Pixabay

 

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