After a planning process spanning years and a parliamentary debate lasting 11 months, Indonesia has on May 2 2007 passed a new investment law (Law 25/2007). The Law replaces the two separate laws which dealt with domestic and foreign investment respectively and covers capital investment in all sectors. The Law is an attempt to boost Indonesia's investment climate and give teeth to the drive to accelerate the development of the national economy. Indonesia is yet to fully recover from the 1998 Asian financial crisis: investment last year was 3% of total gross domestic product, well below the 10% of GDP realized before the crisis.
August 31 2007