President Joko Widodo speaks during the opening ceremony of the World Economic Forum on East Asia yesterday. Photo: AFP
President Joko Widodo turned on his man-of-the people charm at a key Asian business forum yesterday, telling investors they could just give him a call if they ran into trouble.
“Please come and invest in Indonesia – if you have any problem, call me,” he told business chiefs and government leaders at the World Economic Forum’s (WEF) Asia edition, who burst into laughter and applause.
Widodo was seeking to win fresh investment as growth slows, and to convince the world that he remains committed to reform despite recent doubts.
Some 700 participants attended the event, known as “Asia’s Davos” in reference to the WEF’s annual global gathering in Switzerland, at the start of a busy week for Jakarta, which is also hosting a summit of Asian and African leaders.
Indonesia has enjoyed strong growth in recent years, driven by demand for its natural resources, foreign investment and a fast-emerging middle class. But expansion has been slowing as commodity prices fall.
“This is causing a lot of pain for a lot of people,” Widodo told delegates at the WEF event. “I stand here today to invite you to join me and my people on an incredible journey, to make incredible profit.”
‘DON’T SQUEEZE INVESTORS’
Widodo, who came to office last year partly on a pledge to revive the economy, has vowed to improve the business climate and bring new investment.
He sees the WEF as a key platform to push his agenda, where delegated included Coca-Cola and US oil giant Chevron as well as Cambodian Prime Minister Hun Sen and Russian Deputy Prime Minister Arkady Dvorkovich.
However, Widodo, who took power in October, has his work cut out to improve the investment climate, with investors put off in recent years by policies seen as nationalistic in the banking and mining sectors, and complex bureaucracy.
Indonesia came a dismal 114th in the World Bank’s latest rankings on the ease of doing business, out of 189 countries.
The president has already taken some steps. He almost entirely axed fuel subsidies that gobbled up a huge chunk of the economy in the early months of his administration, freeing up billions of dollars.
But analysts said momentum appears to have slowed and accused the government of sending mixed signals. They pointed to a ban introduced last week on the sale of beer at small shops across the Muslim-majority country, which sparked anger from international brewers.
“If you want to roll (out) the red carpet, don’t squeeze them when they come,” said Yose Rizal Damuri from Jakarta think-tank the Centre for Strategic and International Studies.
A major focus for Widodo is improving infrastructure, with potholed roads and ageing ports a key complaint of investors – a problem all too clear for delegates arriving in the chaotic capital Jakarta, which suffers chronic traffic jams and has scant public transport.
– AFP
