OECD Economics Department Working Papers
Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.
The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.
- ISSN : 18151973 (en ligne)
- https://doi.org/10.1787/18151973
Improving the Business and Investment Climate in Indonesia
Indonesia’s business environment is discouraging entrepreneurship and holding back private-sector growth
and development. Weaknesses in the regulatory framework, infrastructure bottlenecks and poor
governance continue to weigh down on investment. Policies have been put in place to address these
problems, but much remains to be done. An important recent initiative is the enactment of the Investment
Law in 2007, which strengthened the foreign investment regime. This paper argues that options for reform
could focus on making regulations more pro-business, including by removing red tape and onerous
provisions at the local level of government, improving governance and relaxing remaining restrictions on
foreign investment. Further financial deepening would facilitate access by enterprises to more abundant,
cheaper sources of finance. This Working Paper relates to the 2008 OECD Economic Assessment of
Indonesia (www.oecd.org/eco/surveys/indonesia).
Mots-clés: investment climate, infrastructure, Indonesia, foreign direct investment, financial sector
JEL:
G20: Financial Economics / Financial Institutions and Services / Financial Institutions and Services: General;
F21: International Economics / International Factor Movements and International Business / International Investment; Long-Term Capital Movements;
E22: Macroeconomics and Monetary Economics / Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy / Investment; Capital; Intangible Capital; Capacity
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