Core Economist Reveals The Impact Of Demonstrations Can Influence Government Images And The Indonesian Investment Climate

Executive Director of the Center of Reform on Economics Indonesia (Core) Indonesia Mohammad Faisal. (Photo: ANTARA)

JAKARTA - The widespread wave of public demonstrations and unrest is believed to affect the image of law enforcement and government performance.

As a implication, this could have an impact on investor's view of the investment climate in Indonesia.

"With the demonstration and there was also chaos yesterday, there is also an influence on the government's image to maintain in terms of socio-political stability which has an effect on the investment climate actually," said Executive Director of the Indonesian Center of Reform on Economics (Core) Mohammad Faisal, Monday, September 1.

Faisal also reminded that Indonesia had just experienced a 13-ranked decline in the World Competitiveness Index released by the World Economic Forum (WEF) this year.

The decline was mainly triggered by weak indicators of government effectiveness.

"One of the indicators that contribute to the decline is government effectiveness," he said.

According to Faisal, the effectiveness of the government includes the quality of policies, implementation to the consistency of law enforcement.

"So, there is a perception of business actors in the ability of effectiveness from the government to carry out policies, especially with the commotion that has just occurred," he said.

Karena itu, lanjut Faisal, pemerintah perlu merespons protes dan keresahan masyarakat dengan bijak dan berperikemanusiaan.

Salah satunya dengan membangun rasa percaya terhadap pelaku usaha, investor serta masyarakat.

"Trust (rasa percaya) terhadap pelaku usaha dan investor, juga tentu saja sekarang adalah trust terhadap masyarakat. Nah, ini yang perlu dibangun (pemerintah) dengan kebijakan-kebijakan konkret," pungkasnya.

Therefore, continued Faisal, the government needs to respond to public protests and unrest wisely and humanity.

One of them is by building trust in business actors, investors and the public.

"Trust (a sense of confidence) in business actors and investors, also of course now is trust in the community. Well, this is what needs to be built (the government) with concrete policies," he concluded.