Foreign Direct Investment FDI Sector Opportunities Opened up Now

Two things stood out.

Indonesia's film making industry has needed a boost for a very long time, so this new potential investment can't hurt. The local industry has had many problems that foreign experience could solve, possibly kick starting the industry and getting it up to international standards. It would be nice to see Indonesian made films, staring Indonesian actors in cinemas over the world.

Toll roads are an obvious sector. Whilst it would be nice if Indonesia could do this alone, a massive investment in road building can only be a good things for the areas served by new highways, likely increasing development and wealth there.

I note the new Java roads, and the planned outer ring road from the airport, via Tangerang toll, BSD and Bintaro, eventually connecting to the Java toll.
Building those quickly would be a massive boost to the country, as would a connection from the new Java toll leading down to Jogja, perhaps as far as Bali.
That wouldn't hurt business, especially tourism, at all.

For me, the most significant change I see is the lightening up of foreign investment in the health care arena. 

Not only does this have the potential to further increase the quality of health care in Indonesia, but we have been sitting back and ignoring the huge revenues in the medical tourism sector such as enjoyed by Singapore and Thailand. 

Bali is the obvious place to build a counterpart to Mount Elizabeth hospital (Singapore) or Bumrungrad (Bangkok).  Quite literally, this is one those “no brainers” or, “if you build it, they will come.” 

As for the OZ and KIWI analyst's comment that these changes are all about “recapturing lost ground”…so what?  The fact is, Indonesia is generally conservative when it comes to opening its doors to foreign investment, and in my view, that is showing fiscal responsibility. 

Moreover, such a comment isn't based on economics, but rather it lies with politics.  The real fact is that both Australia and NZ are very well aware of the incredibly powerful economic potential that Indonesia has.  The unleashing of Indonesia's potential is, and should be of concern to both those countries as neither of them is close to having the same potential. 

Considering Indonesia's strategic location, wealth of natural resources, and an ever increasingly skilful labor force, there is every reason to see our future as the singular and most dynamic economic power in SE Asia.

I saw a news piece recently about an independent German film maker in Indonesia making films, in colloboration with locals.

Regarding Mount Elizabeth. They wont be duplicating the name. They are using other names to expand. Is it Gleneagles or some other name I forgotten.
Siloam falls under the same investment group I think.

Personally, Indonesian still dont trust doctors here for big health issues. They prefer to get a second opinion or treatment overseas. I cannot blame them. I have seen the quality and the ethics of local doctors in super expensive hospital here. They are not yet up to par.

Furthermore, if the patients has insurance cover, going overseas for treatment is the way to go for best possible treatment.

However in contrast, those doctors who opened up their own practice clinic and had experiences working overseas, are very trusted and skilful. Example would be the Jakarta Women and Children Clinic - JWCC. Lots of expats go there.

“Regarding Mount Elizabeth. They won't be duplicating the name.”

And why should they (here in Indonesia), duplicate “the name” anymore than Bumrungrad which is even more successful than Mount Elizabeth?  Duplicating the name has nothing to do with following the model of a world class hospital.     

“Siloam falls under the same investment group I think.”

Not really.  Lippo is huge with Siloam.  In other words, the lead investor with Siloam is Indonesia based.  As far as I know, Lippo is not an investor with either Mount Elizabeth, or Bumrungrad.   

“Personally, Indonesian still don't trust doctors here for big health issues.”

As things once stood, that comment is not such a big surprise…and guess what…some expats are still of the same mind, thus the importance of air medical evacuation under their insurance.

If we had a Bumrungrad level hospital here in Indonesia…why would anyone, (wealthy Indonesians included) think of going elsewhere?  The question is rhetorical…they wouldn't.  But more importantly, and following the Thai and Singapore model…some amount of free medical care (at that ultra high level) would be available to local citizens who are unable to afford the cost. 

“They (Indonesian doctors) are not yet up to par.”

I disagree, and I have plenty of experience regarding health care here in Indonesia including two surgeries.  When I first arrived here almost 18 years ago, I would then have not disagreed with you…but the quality of medical care here in Indonesia has grown by huge leaps.  Unless it's something very serious, I no longer consider trips to Singapore, or to Bangkok for quality medical care.  And, I submit to you that tons of my expat friends would say the exact same thing. 

Moreover, the number of Indonesians that leave Indonesia for their medical care is a very, very small fraction of those who otherwise find quality medical care here.  That is fact. 

It seems to me, and no insult is intended, that you often take the position of an ethnic Chinese/Indonesian.  As it is, I have several friends of the same…they are all collectors of my brother in law's paintings…a national artist of Indonesia, I Made Djirna.  Suffice it to say, there are very few people, Indonesian or otherwise, who can afford to adorn their walls with his paintings.   

“Different strokes for different folks my friend” but you might consider admitting some day that your opinions are not reflective of the vast majority of Indonesians…because in all truth, they aren't. Furthermore, they aren't reflective of the vast number of expats that I know either.

But again, that comment isn't meant as criticism, rather, only as a truthful and objective observation.   

Tempted, as much as I was to be far more specific, I'll take it for granted that you are adept at reading "between the lines."

Cheers, and kind regards.

enduringword wrote:

Personally, Indonesian still dont trust doctors here for big health issues. They prefer to get a second opinion or treatment overseas. I cannot blame them. I have seen the quality and the ethics of local doctors in super expensive hospital here. They are not yet up to par.

I thinks that's a little insulting to Indonesian doctors.
I've had little reason to visit hospitals here, but the few times I have I've had very nice quality medical care.
That doesn't mean all doctors are fantastic (Show me a country without a few quacks) but there are many excellent doctors here.
As for Roy's suggestion of a massive, crazy expensive hospital on the Island of Bali, I could see a place like that doing very well, probably raking in shiploads of cash.

As for Indonesians trusting local doctors, if they haven't got the cash, they have little choice.
I'll be going to a funeral in the next couple of weeks as soon as the last of my wife's aunt's internals fail and she finds her way out of the land of the living. Nothing to do with the doctors, but plenty so do with no cash for insulin.

There are many very excellent local doctors here as well as fabulous hospitals.

However, for any major medical matters I too would prefer to get a second opinion overseas and for any serious operations I would definitely prefer to have it done overseas in either Singapore or Malaysia at Gleneagles or Pantai Hospital or Mount Elizabeth or the like. Next time you need spinal surgery which might be a slipped disc or removing a broken portion of a disc that has come into contact with your spine, would you have the operation done locally or in Singapore or Malaysia? I know where I would have it done.

I also heard that the incident with that American doctor in Pondok Indah Mall resulted in some other quacks closing down their businesses. Not sure if that is true.

With regards to some doctors not being not up to par, probably true. But misdiagnosis for sure happens here. Good thing about hospitals in Singapore and Malaysia is that so many of the doctors are trained in the west. The counts a lot for me.

I also heard that the incident with that American doctor in Pondok Indah Mall resulted in some other quacks closing down their businesses. Not sure if that is true.

It's true.
A quack American doctor was operating illegally in PIM and other places, but was closed down when the place killed someone.
One could argue from that, American doctors are dangerous quacks, but I think we all know better than that.
That being the case, I don't believe we can blanket all Indonesian doctors because some aren't that great.

I think south bali is well served with enough hospitals including siloam ,bimc (2), kasih Ibu , all within 10 min from my house , siloam has a good reputation , but unfortunately I have known in the lesser hospitals, deaths unexplained during simple procedures . I agree indonesian doctors do their best , I wonder if the training is failing or is it the lack of equipment , in comparison to europe etc .

Ya of course in singapore you will find some excellent hospitals , but if it is an emergency and you cant fly ,we must accept  what is available locally.

In Bali it's not all that difficult to find a specialist with his or her training abroad if one takes the time to ask.  I know several MD's here who are either board certified in the US, or are members of the Royal College of Surgeons…one I know is both.  Not knowing Jakarta all that well, I can only speculate the same applies there. 

Does it necessarily mean that with those credentials an MD is better?  Perhaps not, but it can go some distance in providing some peace of mind, and for certain, those credentials are not easily earned by any doctor.

With few exceptions (Aceh tsunami, Bali bombing 2002), foreign doctors are not legally allowed to practice medicine here.  With any sort of medical tourism hospital to be based in Bali, that will obviously have to change, if only within the parameters of that facility.

I've visited Eka hospital in BSD on several occasions, so I can assure you it's very well equipped with pretty much everything you'd expect in any top quality modern hospital (They aren't on their own in that).
I'd have no problem at all trusting them to treat any illness I was unfortunate enough to have.
That doesn't mean all hospitals are so well set up, and I've seen a few local places that are struggling for cash so have much less to offer.
That doesn't reflect on the medical staff, just the state of the economy in those areas.

I wont go into too much details. I firmly believe that for small matters, local doctors do great. For big matters, you dont want to bet your life on it.

Indonesia and China is too much money minded in the hospital system.
Singapore, yes it is all money too. But at least government hospital ~ Singapore General Hospital is on par with Mount Elizabeth. In fact they can be better, affordable and accessible for everyone.

In Indonesia, I like the small private clinic. I dont like the big hospitals. There are many great doctors in Indonesia, but not necessarily in big institutions. The bigger the institution, I have seen doctors here who are arrogant and feel more clever than the patient needs. I havent seen that attitude overseas in Western countries. 
Similar to Indonesia would be China. Arrogant beyond belief that you might encounter. That is why I said not up to par. They will feel insulted if you ask questions on details of the sickness,  or even god forbid if you are asking a second opinion if the patient if doubt. They have god complex.

I have seen doctors here who are arrogant and feel more clever than the patient needs. I havent seen that attitude overseas.

The British NHS would soon change your mind should you ever need one of their sawbones to treat you.
I used to date a nurse (or several), so I met a lot of doctors, and you wouldn't believe their attitude towards the patients.
Butchers have more respect for a side of beef than some of that lot do for their charges.

Talking of butchers... and meats.
I know a wholesaler supplier in Jakarta that supplies Wagyu steaks.
I often buy 5 kg of Wagyu round steak marble 9+ at  280 ribu/KG.

The quality and taste is heavenly really. Just need to cook it 4 minutes each side on a teflon pan, without any oil. I dont see the need to eat steak at a fine dining place anymore.
Furthermore, the wagyu ribs is awesome with korean Galbi bbq sauce.
I never go back to ordinary steak, after Wagyu...

I'm a fan of wagyu myself, but I also had my worst ever wagyu steak in Bandung where I guess they undercooked it and a lot of the fat was still there. The only other steak I will eat is filet mignon and I prefer to cook it myself, same as you with no oil. I like mine with bearnaise sauce....ahhh.....!

Could we all get back on topic please before the thread is inundated with posts about butchers and meat.

If FDI oppportunties open up in the meat business then I might well open a Wagyu steak restaurant. I feel that there are a lot of restaurants selling wagyu steaks but they don't actually know how to cook them all that well. As enduringword says, 4 minutes on each side should do nicely. I just wish more steak houses knew how to cook them properly. I see restaurants and coffee shops opening and closing all the time, but the worst is the standard of food (western food).

Are restaurants included in the FDI sector's opportunities?

Yes restaurants seems opened up for FDI.
The western food in Indonesia still could not catch up yet.
In fact I hate the wannabe japanese or korean food here. They taste so bland and hardly authentic. Only very few are authentic.

Only Chinese and Malaysian food they do justice here.



I know the owner of Oh I hate Monday Coffee chains. Are they doing well in Bandung?

If restaurants are included then I think we should be allowed to talk about meat, although butchers I don't really have anything to say about.

Yes you are right. In Bandung, the best food is the local food. Many attempts at western food are so bad. And yes the same goes for Japanese restaurants, they are mostly poor quality. There are a few decent restaurants such as Hummingbird and Mom's Bakery (great sandwiches) but so many western restaurants seem to have no idea.

I don't know that coffee chain. I stopped drinking coffee from that kind of place after reading that drinks from fast food coffee houses contain between 15 teaspoons and 25 teaspoons of sugar per drink. Pity...I'm going to miss the green tea latte at Starbucks.

Malaysian and Singaporean Kopitiam places are ok here, I had lunch at Killiney's today, and it was decent, altohugh not quite like the real thing. Chinese food, I have only tried a few places. The big chinese restaurant on 2nd floor of TSM is alright, looks not that appetizing but tasted ok.

But we seem to miss decent steak houses here.

Bandung seems to have all these motorbike themed places that open, serve appalling food, and then shut down.

I had one of my best steak experience while in Melbourne, Australia. I invited a Japanese girl in my Uni.
The name of the restaurant is Vlado I think. One of the oldest steak place in the city. That time it was 50 aud per person set. And with red wine, it was a truly nice experience.
I didnt get the girl though... Haha... Maybe the girl was older than me, and I was quite inexperienced aka lame.

About 35 years ago when I was based in Singapore, I used to go to the revolving restaurant at the top of the Mandarin Hotel. They served some of the best Filet Mignon steaks and Dover Sole that I have ever tasted in my life.

Singapore has some really amazing restaurants but those quality restaurants employ western chefs which is probably the reason why their standard is so high and unfortunately so many western styled restaurants in Indonesia are inferior save for 5 star hotel restaurants who usually have an excellent standard.

Hence it might be a good idea to open a western restaurant under the FDI since there is definitely a shortage of quality western restaurants in Bandung.

Under FDI is the investment amount a miliar or is it different?

Indonesias ppl and government are mostly prefering social communism approach. They have big fears of opening their market for foreign investments. Coz they afraid of Chinesse to control the economy. Espicially they dont have a bumiputra law such as in Malaysia to protect the Native People.

Btw Indonesian have to decide wether to be a part of new modern global economy and to be totally opened to foreign investments. Or to be brave enough to have glose economy system.

Indonesian economy is strugelling, the Rupiah lost 40 percent of its value, thats the reason for being flexible and open to foreign investments recently.

Hansson wrote:

Singapore has some really amazing restaurants but those quality restaurants employ western chefs which is probably the reason why their standard is so high and unfortunately so many western styled restaurants in Indonesia are inferior save for 5 star hotel restaurants who usually have an excellent standard.

For balance, Indonesian food restaurants are many and varied, offering a massive choice of local dishes that are as well prepared and served as the best of any western restaurants.
I'm less than bothered about spending massive chunks of cash on a five star job when I can get the same or greater enjoyment from local offerings.

Yes Fred of course you are right. Great Indonesian food can be found here in Indonesia, no doubt about that. But some of us like a nice steak now and again, or good pasta, or  western style sandwiches and it's nice to be able to go to a good western restaurant every now and again, just wish there were more decent ones. I'm a big fan of Japanese food too so I really miss it in Indonesia. And paella, I haven't found a decent place that serves it yet. Then there's Indian food, tell me where I can find an excellent banana leaf restaurant in Bandung?

Sure, living in Indonesia and eating only Indonesian food is certainly one way to go, but I like good food and varied foods from the west as well as from Asia.

In terms of spending on food and eating out. Indonesian likes eating out in malls and favorite restaurants. However they dont spend as much on fine dining it seems.

Most of the expensive dining places that makes lots of money seems to be Chinese restaurants. And they have steady streams of revenues if it is a good regular place for family eating.

Thus lies the problem for specialised eating places ~ Thai, Western, fast food pizza and burger, Indian, Japanese etc. They are seen as too expensive and not for regular eating. Over time, the quality goes down and the restaurants tried to cater to more mild taste of the locals ~ menu watered down.

The fastest and cheapest simple food are local Indonesian. They are cheap though and doesnt mean making much money for the owners.