Indonesia needs to seriously think about investment climate reform if it intends to further boost economic growth and improve the welfare of its people, a World Bank official said here Wednesday.
"Improving the investment climate is one of the top priorities set by Indonesia's new government upon taking office one year ago," PS Srinivas, the World Bank's private sector development specialist in Indonesia, said.
"While there has been improvement on this, investment climate reform needs to be further accelerated."
Speaking at a business seminar, he said investment climate reform was not an agenda exclusive to Indonesia as many other countries have been pushing ahead with this in recent years.
Homi Kharas, the World Bank's chief economist for East Asia and the Pacific Region said an improved investment climate will boost Indonesia's position as an investment destination in the region.
"This will help drive growth that is needed to bring the millions of people still on the unemployment line and bring people out of poverty. We all have this end goal in mind when thinking about investment climate reform."
According to a September report by World Bank unit, the International Finance Corporation (IFC), Indonesia is ranked 115 out of 155 countries in terms of the ease-of-doing-business index, better compared to its rank last year at below 145 but still trailing way behind its regional rivals.