Vietnam and Thailand have become Indonesia’s competitors in attracting foreign direct investment (FDI) into the Southeast Asian region, Indonesian Vice President Jusuf Kalla said on May 2.

Based on the data released by the World Bank, Indonesia was placed in the 91st position in the “Ease of Doing Business” Ranking, while Vietnam stood at the 82nd position and Thailand, at 46.

Singapore was ranked first in the ASEAN region and in the Asia-Pacific region.

The Vice President stated that Indonesia has progressed in improving its investment environment, but other countries in the region can provide better ease of doing business.

Therefore, the government will continue promoting deregulation in order to attract more FDI into Indonesia and increase its competitiveness among its neighbouring countries, he added.

Kalla also highlighted the global economic slowdown, especially in China, that has affected the investment climate in Indonesia.

According to the Capital Investment Coordinating Board in 2016, China was the third-largest investor in Indonesia, with a total of 2.67 billion USD in capital, while the first position was occupied by Singapore, with 9.18 billion USD, and Japan stood second, with 5.4 billion USD. 

VNA