Govt should be more active in creating conducive investment climate

Jakarta (Antara News) - The government should be more active in creating a conducive investment climate in the country, otherwise Indonesia will be lagging behind other countries which are currently intensifying the promotion of themselves as interesting places for investment.

"We can learn from the property sector in Singapore capable of luring buyers from Indonesia. This shows that the investment climate in that country is much better than that in Indonesia," General Chairman of the Indonesia Real Estate Lukman Purnomosidi said here on Tuesday.

At present, the countries in the world are competing in syphoning global investment. Then the investors will place their landing fund to the countries offering certain investment and stability prospects.

For Indonesia, this poses a challenge that should be taken into account. In order to lure more investors, it is necessary to create a certain stimuly.

At present what can be offered is long-term land ownership as well as other fiscal incentives. One thing which also plays a crucial role is promotion.

"We are lagging behind other countries in term of promotion. In fact, Indonesia seen from its potentials is much better than theirs," Lukman said.

Earlier, a survey made by Jones Lang SaSalle indicated that most property investment in Singapore were in the hands of Indonesians. Almost 21 of condominiums, apartments, retail businesses are owned by Indonesians.

In 2006, it was also reported that 1000 luxurious condominiums in Singapore were bought by Indonesians. The number is the highest compared to buyers from other countries.

According to statistics in the past ten years, buyers from Indonesia dominated at least 30 percent of the condominium sellers in Singapore, followed by buyers from Malaysia, India, China and other countries.

Of the all the condominium sales in this year`s first quarter, almost half of the buyers came from Indonesia preferring first class for which the price per a square meter is Rp70 million, located in prime areas.(*)
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