Thailand
Indonesia: Regulations Hamper Middle East Investment
TEMPO.CO, Jakarta – The Indonesian special envoy for the Middle East and the Organization of Islamic Cooperation, Alwi Shihab, said that regulations are hampering Middle East investment despite the fact that President Joko Widodo had visited countries across the regions to attract investors.
In bilateral talks, Alwi said, Jokowi was accompanied by his economic team to convince investors to invest in Indonesia and deals had already been reached.
“But the execution is often hampered. The buck stops with us,” Alwi said yesterday in a seminar on investment in Surabaya.
Alwi said that such a condition has made Jokowi feel uneasy, adding that the president has called for deregulation.
Rich Middle Eastern countries, such as Saudi Arabia, Qatar and the United Arab Emirates are interested to invest in Indonesia, particularly in the tourism sector.
Alwi pointed to the example of a Qatari investor who develops Mandalika tourism, in West Nusa Tenggara. “In one condition, Lombok Airport must be upgraded to become world-class,” he said.
Another example is Saudi Arabia that is eyeing tourist resorts in Padang, Alwi said. Padang is deemed more attractive by Saudi Arabia compared to Bali because the travel time to Mecca could be cut short by three hours. The country, however, has demanded that the government provide 4,000 hectares of land. “We are having difficulty to meet the request,” he said.
Alwi said that the efforts to attract Middle Eastern investors are President Jokowi’s priority. He reasoned that Jokowi wants to silence the critics who accused Indonesia’s preference towards China, Japan or South Korean investors.
Source: https://en.tempo.co/read/news/2017/12/20/056914247/Regulations-Hamper-Middle-East-Investment