Heading off the competition

Author: | Published: 21 Dec 2010

Indonesia's law enforcement and judiciary systems must move towards international business standards if the country is to remain competitive.

Speaking at IFLR's Indonesia Forum in Singapore, Lubis, Santosa & Maulana senior human rights partner T Mulya Lubis says Indonesia needed to move twice as fast as others or it risked losing ground in foreign direct investment goals to other dynamic economies such as India, China, Vietnam and the Philippines. Investment in infrastructure particularly needed improvement, he says.

"Although Indonesia posted respectable growth rates during the global financial crisis, longer-term the country is becoming less competitive," says Lubis. "Indonesia is running fast but its competitors are running faster."

The way the country was governed impeded Indonesian growth, Lubis explains. If Indonesia was to outdo neighboring economies, the country needed to start paying heed to the growing demand for a changed legal environment, he says.

Indonesia's judiciary is still perceived by the regional...