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Eurocham Urges Indonesian Govt to Ease Business Regulations

Jakarta (ANTARA News)- The European Business Chamber of Commerce in Indonesia, EuroCham Indonesia, has called on the Indonesian government to ease business and investment regulations by strengthening coordination among ministries.

“These recommendations are from the perspectives of European businesses on issues affecting the trade and investment climate in Indonesia,” Chairman of EuroCham Indonesia, Jakob Friis Sorensen, said in a written statement on Saturday.

The EuroCham is interested in being proactively involved in dialogs to help Indonesia reach its potential growth and development, he said.

Indonesias economic growth in 2013, at 5.78 percent, offered significant opportunities for sustainable economic development with the support of trade and investment.

He emphasized the importance of involving all stakeholders, including foreign investors, in consultations on drafting new policies.

Such consultations will help improve transparency, investors confidence, and legal certainty, he added.

The European Union is Indonesias fourth largest trade partner and third largest direct investment source.

EuroCham data indicates that the value of European Union investment was US$2.41 billion in 2013, and the investment of the European companies engaged in added values industries, such as infrastructure, manufacturing, pharmacy and banking, provided more than 1.1 million jobs in Indonesia.

However, the benefits would have been much larger had business obstacles been eliminated and the European Union and Indonesian economic ties intensified through the Comprehensive Economic Partnership, he stated.

To boost Indonesian economic development, EuroCham Indonesia recommended that the government concentrate more on improving infrastructure, including the electricity supply and logistics network, to ensure the smooth flow of goods and reduce business costs.

On its website, EuroCham said the attractiveness of Indonesia as an investment destination is improving, with positive outlooks for credit ratings and record investment levels.

The recent visits of numerous senior European company representatives and the surge in foreign investment indicates that Indonesia is becoming a priority country for European companies, mainly due to its massive consumer market, but also as a production hub for ASEAN and greater Asia.

However, in the recent Doing Business report from IFC, Indonesia is losing ground, compared to its regional competitors, as the country slipped three places to 129th out of 183 economies surveyed.

According to the report, Indonesias efforts to improve its business climate were insufficient to match those of neighbouring countries. The report further outlined how the countrys competitiveness fell in most areas of doing business that were evaluated.

Source : www.antaranews.com, Saturday, February 22 2014