Considering Our Bias Toward Local Entrepreneurs

Indonesia's economic policy appears to heavily favor foreign investors, offering them a "red carpet" treatment with extensive incentives and regulatory assurances. While attracting foreign investment is acknowledged as beneficial for the national economy, this approach comes at a significant cost and creates an imbalance, often overlooked, in national priorities.

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The government and public officials seem to greatly admire foreign investors who invest capital in Indonesia.

Foreign investors arrive with a list of demands, including substantial tax incentives and guarantees. Their investment is driven by pragmatism rather than nationalistic sentiment; they can easily withdraw their capital if geopolitical situations shift or more lucrative opportunities arise elsewhere. This inherent mobility contrasts sharply with the deep-rooted commitment of local entrepreneurs.

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Foreign investors do not come without their own interests. They bring a list of heavy requirements: starting from massive tax incentives, regulatory guarantees, to demands to bring in their own foreign workers.

Indonesia possesses a robust cadre of domestic entrepreneurs, described as "economic heroes." These individuals have weathered numerous crises, consistently contributed to state revenue for decades, possess a deep understanding of local culture, and are committed to employing the local workforce. However, the current reality sees these national business figures facing a steep uphill battle, often left to struggle alone amidst uncertainty.

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Foreign investors are not bound by love for this Republic. As soon as the geopolitical situation shifts or another country offers more lucrative benefits, they can easily pack up and leave our country.

The author suggests that this preferential treatment for foreign entities, while local businesses face significant hurdles, represents a critical oversight in economic strategy. The piece questions the long-term sustainability and fairness of an economic model that appears to prioritize external capital over the proven resilience and commitment of its own entrepreneurs.

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Indonesia actually does not lack local economic heroes. We have a line of great and time-tested domestic entrepreneurs.