The Road to Recovery: Improving the Investment Climate in Indonesia
Asian Development Bank | June 2005
Abstract
To determine views of the business community, the Asian Development Bank (ADB) and the World Bank conducted an Investment Climate and productivity Study (ICS) of 713 large and medium manufacturing firms in 2003 in collaboration with the Coordinating Ministry for Economic Affairs and the Indonesian Central Board of Statistics. The survey gathered information on the problems businesses faced such as physical and financial infrastructure, governance, labor, and other factors affecting productivity. It covered 11 regions and 10 manufacturing subsectors: food and beverages, tobacco, textiles, garments, leather and footwear, wood, paper, chemicals and chemical products, electronics and electrical machinery, and transport equipment. This brochure presents key findings of the ICS report Improving the Investment Climate in Indonesia. The problems they face Business problems faced by firms in Indonesia were ranked based on their average ratings in the ICS (Figure 2). They are: (i) economic and regulatory policy uncertainty and macroeconomic instability; (ii) corruption, both at the national and local levels; (iii) labor regulations which are more of a concern than labor skills; (iv) cost of financing which is a bigger issue than access to financing; (v) high tax rates which are perceived as a more serious problem than tax administration and customs regulations; and (vi) availability of electricity.
Citation
Asian Development Bank. 2005. The Road to Recovery: Improving the Investment Climate in Indonesia. © Asian Development Bank. http://hdl.handle.net/11540/2436. License: CC BY 3.0 IGO.Keywords
Electronics Industry
Computer Industry
Vocational Education
Technical Education
Technological institutes
Employment
Information Media
Mass Media
Export Oriented Industries
Electronics
Computers
Telecommunications Industry
Manufacturing Industries
Microprocessors
Electronic Equipment
Communication Industry
Microelectronics industry
Electronic industries
Digital electronics
Microelectronics
Podcasts
Music videos
Internet videos
Interactive videos
Videos
Video recordings
TV
Mobile communication systems
Sound recordings
Motion pictures
Automation
Educational innovations
Technical institutes
Engineering schools
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