Andrew Tani, Founder & CEO of Andrew Tani & Co talks about investing in Indonesia.

How do you view investing in Indonesia

Indonesia is a good place for European, American, even Arab investors, who misssed the China train. They might miss the Indonesia train to more astute ASEAN, Chinese and Korean investors. What the Indonesian businessmen need is a partner who can help them overcome the challenges of a large but less productive labor force, contract sanctity issues, and the high cost of money for capital-intensive businesses.

The infrastructure solution is in sight. There is a USD 400 billion infrastructure development plan in place. A prosperous Indonesia is good for the world because of our strategic location vis-à-vis China, Japan and the other ASEAN countries. A strong Indonesia is good for ASEAN free trade.  Indeed, Indonesia is the country where a European or an American or an Arabian company should spark, and then get the economies of scale, and then go to the other smaller countries.

We are the fourth most populous country in the world today and the systems are working. There is still some poverty in some parts, and the government has a minister specially assigned to look after these less-developed parts of the country. To some businesses that are out there looking at geology or something to do with the Earth, Indonesia has all the minerals of commercial value.

The policy makers are implementing a strategy to develop the mineral resources and not export raw materials. It’s been painful for the medium term. Build the smelters here. Use the mineral resources, develop the people resources, and then go forward. That is the big strategy that the country has in play.