Indonesia needs to create a more conducive environment for attracting investments in the country as some investors actually feel uncomfortable due to the existence of certain regulations that lead to increased production costs.
One such regulations dilatarbelakangi, introduced to increase state revenues by raising tax rates, duties, excise, and levy, forces industry leaders to withhold production to avoid increased costs.
If the industries reduce production capacity to prevent losses, the state and the workers will lose money and potential income.
The state will also suffer from losses due to the industry holding back or even cutting production. If this condition continues, investors will choose to leave to other countries that are more supportive of its capital development