OPTIMALISASI MANFAAT ONE BELT ONE ROAD INITIAVE BAGI INDONESIA

Lukman Adam
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Abstract

Since 2014, Indonesia has been introducing its maritime belt policy, while China has been launching its one belt one road (OBOR) initiative. From China’s initiative, Indonesia can obtain optimum benefits because the existence of OBOR will provide Indonesia with financing alternatives and facilitate it with access to goods to Asia and Europe. However, there is a problem dealing with high investment risk and non-optimum implementation of investment and infrastructure policy. The article discusses (1) Indonesia's response to countries committed, (2) constraints faced by Indonesia in optimizing the OBOR investment, and (3) what to be done by Indonesia to be able to gain optimum benefits in OBOR investment. Direct problems faced by Indonesia are land acquisition, lack of coordination between central and local governments, skepticism of financing, changing regional policy, and the role of local regulations that may discourage investment climate. The solution must be found in strengthening coordination between the Central and Local Governments. In the future, the provincial government’s participation in responding to foreign investment must be increased to have standard understanding.

Keywords

OBOR; China; Indonesia investment; infrastructure

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