"Indonesia is yet to do its best in investment," the World Banks Chief of Country Program on Equitable Growth Youngmei Zhou stated at a discussion on Indonesias EODB here on Monday.
Zhou noted that Indonesia has a low rank of FDI competitiveness index from the Organization for Economic Cooperation and Development (OECD), despite President Joko Widodos effort to improve the ranking.
The World Bank has identified some factors, namely the restriction of foreign ownership in some regions, discriminative investors screening, restriction in land buying, capital, as well as in profits, as reasons behind the low FDI in Indonesia, Zhou remarked.
"The Indonesian government should improve on this," she added.
Meanwhile, Chief of the Indonesias Coordinating Board of Investment (BKPM), Thomas Trikasih Lembong remarked that the achievement in EODB is not everything, but it could be seen as a barometer that could be seen globally.
"Of course, apart from the EODB, there are plenty of regulations in licensing as well as business climate that need to be improved," Thomas explained.
In the annual report of "Doing Business 2018," released by the World Bank, Indonesias EODB in 2018 has improved to rank 72 from 190 surveyed countries.
The report measures the regulations that enhance business activity and those that constrain it. Data in Doing Business 2018 are current as of June 1, 2017.
In EODB report 2017, Indonesias position increased 15 ranks from 106 to 91, and it was put on the list of "10 Reformers" countries.
During the past two years, Indonesias position has increased by 34 ranks. Before 2017, the countrys EODB rank ranged between 116 and 129.
In 2018, Indonesia is ranked six among ASEAN countries, after Singapore (rank 2), Malaysia (24), Thailand (26), Brunei Darussalam (56), and Vietnam (68).(*)