Investing in Indonesia: The Time is Now

Cameron Hume, US Ambassador to Indonesia, recently wrote what I consider to be one of the most bullish Op-Ed pieces on investment in Indonesia by a senior US official in the last 12 years. Hume lists a diverse set of positive indicators including:

• OECD’s recent upgrade of Indonesia’s risk rating now allows US EX-IM Bank to reduce lending costs 20-25%
• The OPIC agreement recently signed with Indonesia makes $1.4 billion available for risk insurance and investment
• Geothermal and other clean energy deals are at the top of the list for investment and trade; Indonesia is streamlining its regulatory framework
• Hollywood is no longer avoiding Indonesia’s as a site location- Julia Roberts’ next film was shot in Bali and “Survivor” may shoot in Indonesia next year.
• The government is offering up to a 2/3 stake in $140 billion of key infrastructure projects to the private sector
  

We know that many impediments in key sectors still hamper US direct investment but the Ambassador (who is close to much of the action) senses that real change is underway and he doesn’t want US firms to miss the train. The op-ed, direct in its appeal, can be downloaded at http://www.aiccusa.org/humeoped.pdf. Something to show those “naysayers”.