Jakarta: Finance Minister Sri Mulyani Indrawati said that the country's investment growth is hindered by outdated laws and regulations.
"We need to fix a lot of things, including our laws regulations. We have many outdated regulations. Many of them were from the 80s. Some of them even were from the colonial era ," the former World Bank managing director said here on Thursday, September 12, 2019.
"These regulations need to be updated. Some of them even need to be removed," she added.
President Joko "Jokowi" Widodo recently said that the fastest way to anticipate slowdown in global economic growth and the possibility of a recession is to promote foreign investment.
Therefore, the President ordered all ministries and institutions related to the economy to make a list of regulations that hamper investments and bring it to him in one week.
According to the President, a company only requires a 2-month licensing process in Vietnam while in Indonesia the same process will take years.
Ongoing trade tensions coupled with geopolitical risks are undermining world trade volume and global economic growth. A softening of growth is predicted in the United States as exports decline along with non-residential investment.
Flatter economic growth in Europe, Japan, China and India is the result of restrained external sector performance and dwindling domestic demand. Global economic moderation continues to suppress commodity prices, including the global oil price.