Indonesia’s investment climate remains competitive amidst the global financial crisis, even though several necessary steps are needed to remain competitive. This was stated by Professor Michael E. Porter during a discussion with the President of Indonesia in Boston, United States. Several factors which need improved to increase competition levels include macroeconomy, microeconomy, and natural resources.
Michael Porter further noted several of Indonesia’s strengths and weaknesses, adding that to overcome those weaknesses, the government must increase the number of jobs, reducing raw natural resource export, and other forms of investment beside monetary, such as technology and technological innovations.
He suggested eight priorities for the government; reformation of laws and regulations, increasing logistical infrastructure, communication, electricity supply, increasing the number of jobs, improvement of customs regulation, increasing domestic investment climate, and forming permanent clusters for several important programs.



