IslamicFinance.de

Indonesia is facing tough economic challenges and a period of political uncertainty. In this climate, Indonesia needs to restore foreign investors’ trust and redirect their attention to its strong fundamentals: a politically stable country with the world’s fourth largest population and a young and growing consumer base. One fundamental step to restoring this trust and raising Indonesia’s standing as an attractive investment destination is to shore up the private sector’s corporate governance practices. Indonesian companies can build trust by protecting the rights of shareholders and honoring their obligations to staff, investors, suppliers and local communities. They should also institute a competent and independent board that can review management decisions.