How fuss to sell Indonesia

Business meeting and lunch in Singapore are connected with a dinner in Ho Chi Minh City, Vietnam on the same day, and within a period of 30 hours he then flew to Shanghai, China. All the agility that the Chairman of BKPM Gita Irawan Wirjawan to sell Indonesia.

The second week of this month, Bisnis Indonesia’s journalist Pudji Lestari took the opportunity to participate in the working visit of the Head of Capital Investment Coordinating Board (BKPM) Gita Irawan Wirjawan to the World Economic Forum on East Asia (WEFEA) in Ho Chi Minh City, Vietnam and the World Expo in Shanghai, China.

The activity was used as a forum to promote investment opportunities in Indonesia. Here’s the report. Business meeting and lunch in Singapore are connected with a dinner in Ho Chi Minh City, Vietnam on the same day, and within a period of 30 hours he then flew to Shanghai, China. All the agility that the Chairman of BKPM Gita Irawan Wirjawan to sell Indonesia.

The target to scoop up an investment of Rp 2,000 trillion (US$200 billion) in 5 years, making such Gita tireless speaks in front of as many investors on various occasions. Activities that have become routine since the official served as the Head of BKPM about 6 months ago. Not only overseas visits, but also actively visiting the various regions in the country, which of course again in order to promote investment.

In a brief casual conversation with Gita, somewhere between his busy schedule, he confirmed an invitation to invest to foreign investors will be opened as wide as possible, especially when he served as head of BKPM. According to him, the domestic investors ability are limited, making the role of foreign investors in the development in the country become very important, especially for the development of capital-intensive sectors such as telecommunications.

He also believes the presence of foreign investors is nothing to worry about, because small and medium businesses also have the potential to move more swiftly with the help of a more adequate capital. However, there are other things that are emphasized by Gita. He wants to diminish monopoly or domination of certain business groups in the country. With the entry of foreign investors, the diversity will necessarily be created. “We do not want company, or businessmen only entered in a particular business field,” he said.

To tackle the fear of foreign domination, Gita sure it can be maintained by requiring foreign investors to meet the needs of national markets and listed its shares (go public) on the domestic bourses. The obligation to register as a public company that may be assigned to a company that has been operating for 3 years. “Personally, I would ask them to sign a contract to perform those obligations,” he said confidently.

Provisions about the investment negative list (DNI), which is one important point for foreign investors, also get a special note for Gita. The list was, he said, should be reviewed periodically, at least every 3 years, so it can follow the development of investment realization.

Not known, not love
Efforts to bring foreign investment to Indonesia, certainly not an easy thing to do. To be willing to immerse their money here, the investors would have to know this country well. In front of the participants WEFEA, Gita convey that desire. The desire for Indonesia to be widely known by the world community. Not just known as the country’s earthquake and tsunami victims, or as one of the countries with high levels of corruption.

Gita seems to understand the true meaning of the old adage does not know does not love. “How hard to convince people of Omaha, Nebraska, [country in the middle of the U.S. is relatively not know about Indonesia] to invest just US$1 in here.” Another ambition of this former banker at JP Morgan is to make Indonesia could be perched on the ranking of the top 40 world in terms of ease of doing business. In a World Bank report titled Doing Business 2010, which includes research in the period June 2008-May 2009, Indonesia is ranked 122, far from Singapore who are at the top.

Even more distressing, Indonesian ranking even far below that of Rwanda, the country which in the 1990s era was still experiencing civil war. Rwanda is at number 67. In fact, quoting data from the International Monetary Fund (IMF), the nominal value of gross domestic product (GDP) this one Africa country last year was estimated at only US$5.24 billion, a hundredth of Indonesia, which reached US$539.38 billion. To that end, the government has slashed the business licensing process in Jakarta to only 5 hours until no later than 7 days, from the previous 4 months-5 months. This is what will be duplicated in seven other provinces by the end of this month, and 33 provinces by the end of this year.

Acceleration of the licensing process is expected to further improve the foreign investment, which in quarter 1 / 2010 grew 24.56% from Rp33.8 triliun. Efforts to introduce Indonesia to the world community expected to bear fruit sweet, in the form of investment that comes by itself. However, currently, the government at least aware of foreign investment would not be possible to come alone. Bring in funds amounting to Rp 2,000 trillion is not a simple matter, for Indonesia, which still must be busy to introduce himself.

* This is an English version of article: Repotnya menjual Indonesia, which published in Bisnis Indonesia, June 22, 2010. Related article To attract investment from China, Indonesian version of Menjaring investasi sampai ke negeri China.

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