NUSA DUA (BALI): Nouriel Roubini, who predicted the 2008 financial crisis, said he was in favour of Indonesia's plan to move up the production value chain.
"The goal of the government of making sure that they are sustaining growth of local enterprises is valid. The objective of increasing the value-added of production is also very valid," Roubini said in a meeting at the Asia Pacific Economic Cooperation CEO Summit on Saturday.
"Over time you don't want just to export raw material. Making sure you have an environment that is predictable is also important," he said.
Roubini said the government's plan to ban exports of raw materials, such as unprocessed ore, from January next year should be done gradually.
"(Doing so) is going to smooth the transition," Roubini said.
Energy and Mineral Resources Ministry official Thamrin Sihite announced on September 28 that it will allow companies to circumvent the ore ban if they promise to build a smelter.
The government is also seeking ways to boost the so-called "downstream sector", especially in energy and other commodities.
Roubini said many countries like Singapore, Japan, Australia, the United States and China have expressed interest in investing in Indonesia.
He also said infrastructure investment is key to increasing productivity but that decentralised administration poses problems.
"One of the constraints (in this) very vast country (is) from the fiscal point of view, it has decentralised over the last decade.
"Coordinating these investment has become more complicated," Roubini said.
Indonesia's government had announced its massive plans to spend 4,000 trillion rupiah in the next 15 years to improve the country's infrastructure by adding airports, seaports and roads, thereby adding jobs.
Hatta Rajasa, Indonesia's Coordinating Minister of Economic Affairs, separately said on Saturday that Indonesia will continue pushing its international agenda, but will ensure that global trade is done in a framework that also benefits the country. Francezka Nangoy