REPUBLIKA.CO.ID, JAKARTA -- Vietnam and Thailand have become Indonesia's competitors in attracting foreign investments into the Southeast Asian region, especially in the face of sluggish global economic conditions, Vice President Jusuf Kalla stated.
"The competition now is in (the field of) foreign investment, and there should be better regulations and ease of doing business as compared to Vietnam and Thailand since those countries have become Indonesia's contenders in the region," Kalla noted at the Vice Presidential Offices in Jakarta, Tuesday.
Based on the data released by the World Bank in 2016, Indonesia was placed in the 91st position in the "Ease of Doing Business" Ranking, while Vietnam stood at the 82nd position, and Thailand, at 46.
In the region of the Association of Southeast Asian Nations (ASEAN), Singapore is ranked first, and it also occupies the same position in the Asia-Pacific region, while Indonesia is placed above the Philippines, Cambodia, Laos, and Myanmar.
"When it comes to the ease of doing business, generally, we have progressed better. However, there are other countries around us that provide even better ease of doing business," he pointed out.
To this end, the vice president said the government will continue to promote deregulation in order to attract more foreign investment into Indonesia, thereby boosting its competitiveness among its neighboring countries.
"The competition, in terms of the ease of investment, needs to be better in these three countries," he remarked.
On the other hand, Kalla also highlighted the global economic slowdown, especially in China, that has affected the investment climate in Indonesia.
"Regarding foreign investment, it is not only Indonesia that is experiencing a decline but due to the weakening economic state of several countries, especially China, growth is slow all across the world. Hence, automatically, they cannot utilize the capacity that they possess," he explained.
Based on the data released by the Capital Investment Coordinating Board in 2016, China is the third-largest investor in Indonesia, with a total of US$2.67 billion in capital, while the first position was occupied by Singapore, with $9.18 billion, and Japan stood second, with $5.4 billion.
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