Good Environment for Investment

Investment is very important for economic development. As we know, investment is one of factors which can create more jobs and more opportunities to society in conducting economic activities. So, almost all countries strive to attract investor for investing. But, only a few countries can create good environment for investment. 

According of investment sources, there are two type of investment such as foreign investment and domestic investment. Then, according of investment type, investment is divided into two kinds such as direct investment and financial investment (indirect investment). Direct investment is created by foreign investor or domestic investor in which it directly use money on building infrastructure, factory, etc. While financial investment is just put in financial market and it can be taken suddenly by investor.

Financial investment is very plenty in Indonesia. There is much money flowing into our financial market. Then, that money can go out into our financial market suddenly if there is shock or destructive economic phenomenon. So, foreign direct investment is more important for enhancing economy and gov’t should focus on inviting FDI. I think that gov’t should not regard about how to increase financial market, but has to focus for attracting direct investment from domestic or foreign.  

Inviting investment, especially FDI is not easy task. There are many challenges to attract FDI in Indonesia. In other side, our environment still doesn’t support investment. I mean that there are many obstacles which hinder investment activity such as bureaucracy, incentive, etc. While other countries, especially Malaysia, Thailand, and Singapore also try to attract investment. So, we compete with other countries to influence investor in order to conduct investment in our country.

Good environment is not only related to availability of resources, but also to easiness in doing business. If business process is lumbering, that can make investor reluctant to invest in our country. So, Indonesia should not depend in resource advantage, but has to repair investment process, so that investor will feel comfortable in conducting investment. This strategy should do by center government and local government. Both center and local government play important role in attracting investment. They have to strive to make their environment good for investment. Change has to be begun in government conduct connected to measures to attract investor. []

NB: I apologize if there are grammatical errors. I am still studying English now.