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Indonesia should prioritize legal certainty to attract global capital
Experts argue that enforceable contracts and predictable regulation matter more than tax incentives for the next generation of international investors.
A story in the SCMP Economy highlights a shift in what global investors value, saying predictable courts and legal certainty are becoming more important than tax breaks for building successful financial hubs in Asia.
The outlet reports that analysts point to enforceable contracts, stable regulation, and robust dispute resolution as key prerequisites for attracting capital. SCMP Economy cites economists and legal experts who argue tax incentives may bring some firms initially, but cannot offset erratic policy or weak supervision.
SCMP Economy also links Indonesia’s push for an international finance center to lessons from established hubs, saying Singapore and Hong Kong have succeeded by building institutional environments that support investor confidence.