REPUBLIKA.CO.ID, JAKARTA --  By Otniel Tamindael

High profit margins have motivated many foreign investors to run their businesses in Indonesia following conducive investment climate in the country.

The foreign investors still have strong interest in investing in Indonesia because they have made a lot of profit from their investments in a number of business sectors.

Speaking at a seminar themed, The Challenge from Quantitative Easing to Economic Management in Southeast Asia: Indonesia's Experience, on Monday in Kuala Lumpur, Malaysia, the Indonesian Finance Minister Chatib Basri stated that foreign investors in Indonesia have earned huge profits.

Chatib pointed out that the investors earned profits from their investment across various business sectors including telecommunication, automotive, banking and cosmetic industries.

Therefore, the minister expressed hope that the investors will not take all the profits back to their respective countries but instead, will reinvest in Indonesia.

According to him, the Government of Indonesia is currently drawing up a policy to provide incentives in the form of dividend tax relief to foreign investors who will reinvest their profits in the country.

"The Ministry of Finance is preparing the policy that is expected to be completed within the next two months," the minister asserted.

Further, Chatib added that the foreign investors who reinvest their profits in Indonesia will strengthen the rupiah exchange rate.

He pointed out that a number of Malaysian investors in Indonesia at present are investing in various sectors such as banking, telecommunication and palm oil industry.

However, lack of law enforcement and justice, in addition to rampant corruption practices in Indonesia can prevent the investors from investing in the country.

Therefore, Japan has expressed hope that Indonesia will curb corruption to create conducive investment climate and a healthy competition among fellow investors.

Former Constitutional Court (MK) Chairman Mahfud MD stated in Tokyo, on Monday that former Japanese Prime Minister Yasuo Fukuda, now the president of Japan-Indonesia Association (Japinda), expects Indonesia to clamp down on corruption practices and create conducive investment climate.

The former MK chairman is currently in Tokyo at the invitation of Fukua, who considers the former as a clean and consistent figure to uphold justice and to fight against corruption.

"Fukuda also expresses hope that good relations between Japan and Indonesia will continue to improve in the future," Mahfud explained, adding that law enforcement and justice are important for Indonesia to follow now and in the future.

He noted that good relations between Japan and Indonesia are important since Japan is currently the largest investing country in Indonesia with an investment value of US$4.7 billion in 2013.

Meanwhile, Chairman of the Commission VI of the House of Representatives Airlangga Hartarto stated here on Tuesday that the government should offer more incentives to attract investors to conduct business in the backward regions of eastern part of the country.

Airlangga urges the government to lead the investors toward the eastern Indonesian regions to create equality of economic development and public welfare.

He noted that Java has always dominated the country's economy by contributing more than 50 percent. Based on data from the Central Statistics Agency (BPS), the country's Gross Domestic Products (GDP) grew 5.83 percent in the third quarter of 2013.

Java contributed 58.2 percent to the country's GDP of Rp2,375.3 trillion on current prices in the third quarter of 2013, he noted.

"This means Java's economy was worth Rp1,382.4 trillion during that period," he pointed out.

Further, he added that eastern Indonesia has high potentials for investment in terms of natural resources.

Therefore, acting Governor of Maluku, Saut Situmorang, has emphasized his determination to promote the province in order to attract investors, tourists and visits by both domestic and foreign state officials.

"Maluku province has progressed a lot and has great potential; I am determined to promote this widely," asserted Situmorang, who was appointed as Maluku acting governor on October 23, 2013.

According to him, the province is abundant in natural and marine resources, oil and gas, and mining with high economic value that should be promoted intensely.

Furthermore, Maluku also has a lot of marine, historic and cultural tourism attractions for both domestic and international tourists as well as for investors to develop.

"Friendly and magnanimous behavior of Maluku people toward their guests is the main factor in promoting the province," Situmorang pointed out, adding that he will continue to uphold that potential.

To speed up regional economic growth, the Indonesian Chamber of Commerce and Industry (Kadin) has called on the government to stimulate more investments in maritime transport.

"In an effort to speed up regional economic activities, the government needs to be more innovative with the maritime-based investment and business policy, particularly in marine transport as the bridge of national connectivity," Kadin deputy chairman for regional empowerment Natsir Mansyur stated here early this month.

He noted that an innovative policy is needed for regional economic growth in order to suppress the burden of the national economy.

According to Natsir, the connectivity still relies on the transport of goods because of high cost and inadequate infrastructure facilities.

"Therefore we have to be well oriented in maritime-based investment and business by increasing the number of ships required," he reinstated.

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