Resource information
This report shows that some investors
still perceive Aceh as a risky place to do business, despite
being relatively peaceful for almost four years. Security
incidents, relatively common in post-conflict environments,
deter businesses and individuals from investing in Aceh,
robbing the economy of necessary capital and innovation.
Other consequences of the conflict, including forms of
illegal taxation, also hurt investment. The Government of
Aceh is aware that until businesses and people change their
perceptions of security in Aceh and feel confident that they
can reap the full benefits of their investments, little
investment will be forthcoming. As a result, growth in the
province will be limited and efforts to reduce poverty less
effective. There are other problems affecting Aceh's
economy. These include the business environment, access to
capital and the quality of infrastructure. This report seeks
to show how these different factors affect investment and
growth, and provides recommendations on how the Government
might prioritize and sequence policy changes to improve the
investment climate.
