Investment for development

Indonesia - Investment Policy Review - OECD




Date of publication 1 November 2010

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Table of contents

  • Excutive summary (pdf)
  • Overview of progress and policy challenges (pdf)
  • Investment policy
  • Investment promotion
  • Competition policy
  • Infrastructure development
  • Financial sector development
  • Public governance
  • Other aspects of the policy framework for investment - trade, tax, corporate governance and promoting responsible business conduct

OECD Secretary-General Angel Gurría and Indonesia’s Finance Minister, Mr. Agus DW Martowardojo at the launch event in Jakarta on 1 November 2010. 


Indonesia has undertaken a decade of political and economic reform, under very difficult circumstances. Democracy is now firmly established, and the economy is growing at a steady pace in spite of the global financial crisis. Reforms over the past decade have done much to improve the resilience of the Indonesian economy, and the government has made substantial progress in creating a better climate for investment. New laws have been enacted in almost all sectors, and new institutions have been created to advise the government, implement and enforce laws, regulate newly liberalised sectors and settle disputes.


Foreign investors have taken notice. Foreign direct investment in Indonesia in the past five years has exceeded the earlier peak achieved in 1996, before the Asian financial crisis in 1997-98 brought economic contraction and net outflows of foreign investment. This investment is also becoming increasingly diversified by sector and by country of investor.


The Review charts Indonesia’s progress in developing an effective policy framework to promote investment for development and suggests ways the climate for both domestic and foreign investment might be further improved.


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