JAKARTA – The government is asked to reformulate investment target indicators following the reveal of the manipulation scandal behind the World Bank’s Ease of Doing Business (EoDB) ranking. It is vital as the said ranking has been regarded as the main reference for investors in their decision-making processes. Abdul Hakim Bafaqih, a member of Commission VI of the House of Representatives of Indonesia (DPR RI), suggests this idea, as quoted from DPR RI website, dpr.go.id, today (22/9).
Bafaqih believes that the EoDB ranking manipulation scandal arouses people to question the credibility of EoDB reports in 2018 and 2020. Moreover, these reports had been formally adopted into the economic achievement objectives, especially of investments, in the Job Creation Act.
“The indicators of EoDB have been frequently exported by the government, particularly by the Ministry of Investment/Indonesian Investment Coordinating Board, during the meeting with Commission VI of DPR RI. The indicators have also been reckoned as the benchmark for the government as we monitor the targets. However, they turned out to be disputable,” Bafaqih further adds.
According to Bafaqih, with the failing reputation of EoDB and the deferment of the evaluation project next year, the investors would lose the point of reference. Thus, it might lead to doubts in investment decisions in Indonesia. (LK/ZH)