Brilio.net/en - Heres a toast to Indonesian president Joko Widodo! On Wednesday he announced plans for a big bang loosening of regulations on foreign investment in 50 sectors. Yes, fifty. This move is intended to increase and promote much needed competition.
This move is just another one of the presidents latest changes in an attempt to reverse the slowdown of the economy, which slid down to a mere 4.8% growth in 2015.
As the largest Southeast Asian economy, Indonesia has actually been decreasing in growth over the last six years, in part due to cooling relations with major trade partner China and falling commodity prices.
"We are seriously considering deregulation across the board, but focusing on e-commerce, health care, and creative industry," Widodo said ahead of a cabinet discussion of the proposals.
Other industries that would open up are the 16 main negative investments, such as agriculture, forestry, energy, communication and transport. Most Indonesians would definitely agree on that last one. The policy would raise the limit on foreign investment stakes in companies from minority to majority, representing a great shift in possible future stake holders.
Even the health care push would open up hospitals, clinics and laboratories to foreign investment and even foreign jobs as currently foreign medical professionals are not allowed to practice in Indonesia.
"For me competition is very important," said Widodo. "If we have already launched our deregulation, the bureaucracy and the system must follow the new rules."
According to the president, there are two aspects to his growth strategy: deregulation and creating competition, thereby improving efficiency and creating better services, infrastructure and development.