Indonesia to open doors to more foreign investment, says Jokowi

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Indonesia plans to lessen its tight labour rules on foreign companies. FMTNews

Jokowi says Indonesia wants to make up for lost ground by attracting investors back.

Speaking from his home town of Solo in Central Java, Jokowi told Bloomberg’s Editor-in-Chief John Micklethwait that it’s his “first priority” to reform the labour rules. First he’ll need to win over labour unions, which have already threatened protest action over possible changes to wage and health insurance regulations.

The president said Wednesday he’ll allow 100% foreign ownership in sectors such as health and education in special economic zones. “We compete against other countries in attracting investment, to create jobs,” Jokowi said. The two main complaints he hears from investors are regarding employment in labour-intensive industries and licensing rules, he said. “We will work on these two as soon as possible.”The president said he’ll retain Sri Mulyani Indrawati, currently finance minister, in his cabinet, though he declined to say what role she’ll take.

 

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