Jakarta (AFP). Indonesia has been named as an investment destination-3 in Asia after China and India, Asia Business Outlook issued by the Economist Corporate Network earlier this year.
However, it is not necessarily to make the Foreign Direct Investment (FDI), which has been operating in Indonesia helps to improve the investment. The reason, in addition to PMA's hoping a favorable investment climate, they also want the rule of law in favor of the business world.
Based on the results of research center of the Faculty of Economics, University of Indonesia study, of the 120 respondents PMA, the majority want more legal certainty than government incentives.
"As many as 89% want better legal products to ensure the continuation of their investment here," said Dian Praise Simatupang, experts State Finance Law, University of Indonesia, said in a statement on Tuesday (22/1).
This legal certainty, further Dian, is the main instrument in creating growth in the FDI investment. Without clear legal certainty, instead it will create an unhealthy business climate.
A total of 120 respondents, the informant came from various business sectors, such as oil and gas (oil and gas), infrastructure, retail to investment companies. "On average, the informant PMA we have operated about 10 years in Indonesia," he said.
Several cases of legal uncertainty dikemukanan by PMA, among others won a lawsuit Renaissance Capital Management Investment Pte Ltd to Merrill Lynch International Bank Ltd.
The Supreme Court (MA) has decided Renaissance owned Prem Harjani entitled to compensation amounting to Rp 251 billion. Whereas before the High Court of Singapore, it has been decided that Prem Harjani has committed fraud and Renaissance have acknowledged debts to Merrill Lynch. (dtc)