British firms optimistic on business in Indonesia despite challengesSouce:Xinhua Publish By Jane B. Hatcher Updated 29/11/2012 9:59 pm in Business / no comments
JAKARTA, Nov. 29 — British firms operating in Indonesia are upbeat about the country’s business environment next year, despite concerns over bureaucracy, legal uncertainty, and poor infrastructure, local media reported on Thursday.
An annual survey, called the BritCham Business Confidence Index, showed that British companies in Indonesia have a confidence rate of 83 percent for business prospects in the country.
“British businesses are very positive about doing business in Indonesia in 2013, with our members indicating they expect increased revenue and sales, investment and spending, and plan to hire more staff,” Haslam Preeston, the chairman of BritCham.
The organization has a membership of nearly 1,000 British companies.
The chamber’s members appreciated the “work done by the Investment Coordinating Board in working with businesses to improve the business environment,” said the chairman, quoted by the Jakarta Globe.
While the chamber also said that Indonesia has made major progress in establishing political and social stability in recent years, providing fertile ground for businesses to expand, it noted several challenges of investing in the country, as revealed in a low score in the ease-of-doing-business section of the survey.
“Significant challenges remain, including regulatory uncertainty, bureaucratic inefficiency, the slow pace of infrastructure development and labor issues. This is reflected in our ease of doing business score of 65,” Preeston said.
BritCham suggested the Indonesian government consider three key actions: streamline and simplify government services, execute key infrastructure projects with attention paid to the cost and reliability of communications, and enhance timely consultation and discussion with the international private sector before introducing new laws and regulations.