Trade policies inhibit investment in Indonesia: World Bank

The World Bank has said that new rules on investment brought about by the Job Creation Law should be complemented by trade policy reforms for Indonesia to attract more investment. In a virtual press briefing on Tuesday, the institution explained that changes in trade policies were paramount to support the massive “investment diversion” to Southeast Asian countries as a result of the Russian invasion of Ukraine and pandemic-related disruption. The World Bank noted that, as a risk management strategy to reduce dependence on a single country, investment that was previously focused on China had been diversified to other countries in the region.