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A study on foreign direct investment and bureaucracy in Indonesia

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2011 Professor Seung-Joo Lee ii
ABSTRACT
A STUDY ON FOREIGN DIRECT INVESTMENT AND BUREAUCRACY IN INDONESIA
By Darmansyah Indonesia is still one of the countries with a low performance and low potential for FDI. Based on Global Competitiveness Report (GCR) 2009-2010, the main problem faced by entrepreneurs in doing business in Indonesia is inefficient bureaucracy. Moreover, in the World Bank report in 2010 it is also explained that to a start business in Indonesia, the investors have to go through nine procedures and have to wait for 60 days, which is the longest time compared to other ASEAN6 countries. Some investment regulations that are still conflicting with each other will not be beneficial to support the new investment law as a reformed driver for the investment policy that has been imposed since 2007. Red tape occurs not only in the central but also in the local government as the consequences of the institutional and legal framework. This paper analyzed the condition of FDI and bureaucracy in Indonesia through trend analysis as well as comparative analysis by using data from credible organizations in Indonesia and worldwide. In order to abolish this situation the government needs more effort to formulate efficient bureaucracy to attract investors. Both central and local government should have strong commitment to support the process of bureaucracy reform. Moreover, the government should support the electronic and online system persistently to reduce bureaucrat‟s in


Full Text
Title A study on foreign direct investment and bureaucracy in Indonesia
Similar Titles
Material Type Reports
Author(English)

Darmansyah

Publisher

[Seoul]:KDI School of Public Policy and Management

Date 2011
Pages 84
Language English
File Type Documents
Original Format pdf
Subject Economy < Direct Investment
Holding KDI School of Public Policy and Management