Dutch investors forced to seek better alternatives
13 Dec '07
2 min read
Dutch investment which was expected to take grounds in Indonesia has been diverting its focus to other Asian countries because of conflicting legal procedures that are dampening the investment strategies.
European investors especially from Netherlands, have expressed concerns about the growing problems faced because of complicated regulations, insufficient infrastructure red tape, and comprehensive application process for attaining business licenses.
As a consequence, Dutch investors were opting for other countries like Vietnam, Cambodia and Bangladesh which provides a smoother and adaptable business atmosphere than Indonesia. Local laws of Indonesia very often contravene the laws of the foreign investors distorting implementation plans and programs.
Junus Effendi Habibie, Indonesian Ambassador to Netherlands also agreed to the grievances of the investors and while addressing a seminar, stated, “It was time to make the investment climate in Indonesia more hospitable to Dutch investors and all foreign interests doing business in the country. Besides, to deepen bilateral economic cooperation with the Netherlands, the Indonesian and Dutch governments will enter into a comprehensive partnership agreement some time next year”.
According to the statistics, Dutch investments in Indonesia reached its highest in 2005 with US $1.15 billion. However it went down at an equal pace to reach $35.2 million in 2006 which recorded for being the lowest ever.
This year again, Dutch investments have come up to $140.8 million in the first six months. Indonesian Exports to Netherlands increased by 3.8 percent compared to the previous year, while its imports dropped by 18.2 percent to reach $264 million.
While export items largely included footwear among others, import goods encompassed machinery parts, perfumes and cosmetic kits.
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