REPUBLIKA.CO.ID, JAKARTA -- The economic policy packages announced by the government recently have shored up investors' confidence in the Indonesian economy, Indonesian Chamber of Commerce and Industry (Kadin) has said.

"The government's pro-investment economic policy packages, coupled with stable domestic, political and security conditions, have shored up investors' confidence," Kadin Deputy Chief for Banking and Financial Affairs, Rosan Perkasa Roeslani, said in a press statement released on Tuesday.

The recent foreign investment inflows have strengthened dollar supplies, leading to the rupiah appreciating against the greenback, he said.

Furthermore, tax incentives also spurred economic activity as these have an impact on the capital structure of industries, he said.

"More importantly, the government needs to issue policies which encourage the creation of more jobs to reduce possible layoffs," he said.

He expressed the hope that the national and global economies will recover soon.

Earlier, the Association of Indonesian Young Businessmen (Hipmi) expressed optimism that the three packages of economic policies issued by President Joko Widodo will, if implemented properly, help national businesses and industries acquire a competitive edge.

"Hipmi is optimistic that businesses and industries will become more competitive in the future," Hipmi Secretary General Priamanaya Djan said.

According to the World Economic Forum (WEF), the Indonesian economy was ranked 37th out of 140 countries surveyed when it came to the question of having a competitive edge. Last year, the country was ranked 34th on this count.

Indonesia lagged behind three other ASEAN member states in terms of economic competitiveness. Singapore was ranked second, Malaysia 18thand Thailand 32nd.

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