How can conflict management contribute to improving the business and investment climate in Indonesia?

16 June 2019

Investors always consider risk factors in every projected profit of their business. Although in general, the risk increases in line with the potential profit, but if the risk factor is considered too large, not a few investors shift their investment to other areas, which are considered to have a lower level of risk. One of these risk factors is the potential for conflict because there is no certainty of land status. The absence of land certainty for investors is a vulnerable condition that becomes a risk in doing business. This will certainly hamper business development and ultimately affect the wheels of the economy. From the local community’s perspective, land security is needed to ensure the benefits of the investment on their livelihoods.

Awareness to make conflict management an integrated part of business management, will make it possible for conflict resolution as mentioned above to be more efficient and effective. Investors will feel comfortable in running their business and interest in investing will grow. This will ultimately have a positive impact on the business climate in Indonesia.