The Indonesian government has announced a package of policies aimed at improving the investment climate, including a revision of the investment law, Economic Affairs Minister Budiono said.
In a statement released late Thursday, Budiono said that the package was the government's response to demands raised by the business community about the urgent need for reform and public service improvement.
"Competition to attract investment among countries in Asia has become severe and this package is expected to create an environment that will bring Indonesia back as an attractive investment destination," the statement said.
It said each objective in the policy package, which is expected to boost economic growth to more than six percent this year, was tied to a program, a timetable and the ministry in charge of achieving it.
In general, the government aims to revise the investment law, strengthen investment service agencies and simplify investment procedures.
Policies to be put in place include those that will speed up customs procedures, improve tax laws, improve the industrial relations climate, provide protection for Indonesian workers overseas, and empower small- and medium-sized enterprises, the statement said.
Foreign investment approvals grew steadily last year, which analysts attributed to improved political stability after 2004 polls swept President Susilo Bambang Yudhoyono to power on an anti-corruption platform.
Rampant corruption in Indonesia - one of the world's worst-rated in terms of graft - has been cited as a main deterrent of much-needed investment in Southeast Asia's largest economy.