PRICE OF AN INVESTMENT

At least half of the investment in Indonesia in 2011 came from the private sector. This conclusion from the figures contained in the Draft Budget and Revenue Expenditure (Budget) for the year 2011.

Year 2011, the value of the investment required USD 2243.8 trillion. According to Coordinating Minister for Economy, Hatta Rajasa, the government is only able to cover a maximum of 17% of the total investment required.

Are private investors, foreign and domestic investment is expected to patch up this country needs. The Government does not expect business investment needs to close all numbers, but only partially.

It's not that easy to realized expectations. Investments referred to in this context rather than placing the money in financial assets such as stocks or bonds. But the direct investment activities, commonly referred to foreign direct investment (FDI).

Hope it does not easily realized because of the potential investors aware of their strong bargaining position. This country needs to accelerate the rotation of the wheels of their economies. That is why, most investors put a high price before invest. They asked for tax exemption.

It is probable, the government will not be able to grant all requests tax holiday. How else could be burdensome tax exemption budget.

At times like this, is there that can still attract the FDI investors? Clearly there is. Indonesia should be able to improve the investment climate. For example, make the rules more consistent.

Maybe it sounds cliche advice because it preached a thousand times. But in fact, still a lot of homework to be completed by the managers of this country, whether in the executive branch-legislative-judicial bodies or in regional centers.

Recent examples are disputes about land oil palm plantation in what should be a forest. The story that happened in North Sumatra had the same themes as the story of forest annexation by coal miners in East Kalimantan, in 2009 three-four years ago.

Initially the rule of law collide, then there is letting. And after the plantation or mining it is running, the new central government issued.

Without improvement of business climate, should not be surprised if investors always put a high price.