Indonesia’s Ministry of Trade will revise 18 ministerial regulations considered to be hampering exports and investments, said the country’s officials recently.
Foreign trade director general under the Trade Ministry Indrasari Wisnu said of the 18 regulations, 11 relate to imports while seven regulate exports. Some of them could be revoked if needed, he added.
Among them, a regulation regulating imports of machinery and devices is set to be revised before the end of Indonesian President Joko Widodo’s first term on October 20, he added.
Indonesian Trade Minister Enggartiasto Lukita also hinted at a revision of a 2018 ministerial regulation on used capital goods imports.
The revision of the 18 regulations, he said, was crucial for Indonesia to benefit from investment influxes as a result of industry relocations from foreign countries.
According to a recent World Bank (WB) report, Indonesia is struggling to attract foreign investments, which are instead going to neighbouring countries such as Vietnam and Cambodia as they embark on deregulation and policy solutions.
Indonesia’s net foreign direct investment (FDI) inflows only accounted for 1.9 percent of GDP last year, compared to 11.8 percent booked by Cambodia and 5.9 percent by Vietnam, the bank’s data shows.
Between June and August, 33 companies announced plans to set up or expand production abroad, of which 23 are going to Vietnam and the remaining 10 to Cambodia, India, Malaysia, and others, rather than Indonesia, the WB report revealed./.