M'sian Bizmen Advised to Tap Opportunities across Indonesia

Petaling Jaya (News Today) - Malaysian entrepreneurs should focus on establishing businesses in different parts of Indonesia and not be too "Jakarta-centric," one of them said.

KRA Group Chief Executive Officer (CEO) Karim Raslan said opportunities were now opening up across the Indonesian archipelago and provincial centres like Makassar, Balikpapan, Medan and Palembang, had become increasingly important.

"I call them ’daerah-to-daerah’ or region-to-region linkages, which decentralisation policies have facilitated," he said, during a talk on the Investment Outlook and Business Opportunities in Indonesia, at the Activate Asia: Insight Indonesia Forum here Thursday.

He added the development would benefit in particular Penang, Kuching and Kota Kinabalu. Indonesia’s economy grew by better than the expected 4.5 percent in 2009. It is now expected to grow between 5.5 percent to 6 percent in 2010.

Earlier in his opening remarks, Indonesian Ambassador to Malaysia Professor Dr Da’i Bachtiar said, moving into a new era, Indonesia is now undergoing exciting political as well as economic reforms.

"Over the medium term, the move to democracy and civil society will have a positive impact on business ethics and the investment climate, although there may be rough periods along the way," he added.

Indonesia, he explained, now has a relatively open foreign investment regime and is looking to it to boost the country’s economy. Virtually all sectors, except those of specific national interest to Indonesia, allow foreign participation. The government has also issued several new regulations to ease the entry of foreign firms and capital into the country.

"Over the past few years, the government also made changes to simplify the approval process," the ambassador said.

He said that the Investment Coordinating Board is implementing a one-stop-shop system (PTSP), to cut bureaucratic redtape, and allow investors to process business licences faster.

The Activate Asia Forum, jointly organised by HSBC Bank Malaysia and the Chinese Chamber of Commerce and Industry of Kuala Lumpur and Selangor, was aimed at providing businesses with the insights and knowledge to tap the Indonesian market.

The one-day forum also provided basic information on the foreign investment environment in Indonesia and a brief overview of related rules and regulations.

Source : kompas

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