Tempo.CO,
Jakarta– Economist Lana Soelistianingsih from the Indonesian University said
Indonesia’s biggest challenge in investment is the people’s lack of interest
and knowledge, which is why the government has to provide intensive education.
“Education
is important as knowledge about market so that the spread of local and foreign
investors is more equal. “ said Lana Tuesday. Even distribution of local and
foreign investors will protect Indonesia from foreign pressures.
Currently,
foreign investors have larger percentage in stock investment with 51 percent
and government bonds with 35.8 percent, making Indonesia depending too much on foreign investment.
There
are two things causing the people’s lack of interest in investment. First of
all, small per capita income. Even though investment costs are now cheap, per
capita income of Rp. 3 million a month is considered scant. “People still put a
lot of thought in saving, let alone investment. “Lana said
Second
of all, the people’s lack of awareness of the importance of investment. In order
to overcome this, the government must start introducing investment at school. “[The
introduction must] start in junior hisg school.” Lana said
Indonesia
is facing five challenges in physical investment: Corruption, inefficient
bureaucracy, lack of inadequate infrastructure, overlap between policies of the
central and regional governments and expensive cost of loans.
In
the short-term, the government can improve infrastructure and obviate the overlap
between the central and regional governments. “For the other three [challenges], a long-term plan is needed in order
to improve them.” Said Lana
