Navigating Bureaucratic Hurdles: Fostering an FTZ-minded Investment Climate in Indonesia, Malaysia, and Thailand
DOI:
https://doi.org/10.15294/lslr.v10i2.36950Keywords:
Investment, Free Trade Zone, Bureaucratic Hurdles, Regulatory ReformsAbstract
Indonesia, Malaysia, and Thailand are reported to foster regional and international cooperation, as well as compete in attracting domestic and international investments, particularly within the context of FTZs. Bureaucratic hurdles remain the biggest issues responsible for stifling investment growth, which contrasts with the nature of FTZs and the designation as areas for rapid economic growth. Therefore, this study aimed to explore the normative and consequential structural issues that plague the three countries. A normative legal comparative approach was adopted. The diverse analyses carried out showed a range of divergent bureaucratic hurdles that the three countries encountered. Indonesia's Batam suffered from institutional dualism, creating legal uncertainty in land rights. Malaysia's Port Klang encountered procedural fragmentation across uncoordinated agencies, and Thailand's EEC achieved efficiency but lacked transparency in discretionary incentive processes. As a result, significant recommendations designed to suit the issues of each country were proposed to help minimize bureaucratic hurdles and reduce the implications, for the purpose of attracting more investments and supporting more rapid economic growth.
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