Govt to Revise Regulations to Improve 'Ease of Doing Business' Ranking

KATADATA - Indonesia has a global reputation as a country where investors have a hard time doing businesses. But Indonesian President, Joko (Jokowi) Widodo has ambitious plans to make sure Indonesia will rank much better globally within the next two years. To achieve this goal, the government is planning to revise 22 regulations.

In the 2016 Ease of Doing Business 2016 survey, the World Bank ranked Indonesia 109^th out of 189 countries. Top of the list was Singapore. Malaysia ranked 18^th and Thailand was 49^th. President Jokowi now aims to get Indonesia in 40^th position in the next two years. 

Head of the Investment Coordinating Board (BKPM), Franky Sibarani, says that 22 national and local business regulations need to be deregulated. BKPM will revise the regulations using the ten World Bank indicators of ‘Starting a Business’, ‘Resolving Insolvency’, Getting Credit’, ‘Business License’, ‘Property Report’, ‘Electricity’, ‘Tax’, Overseas Trade’, ‘Minority Investor Protection’, and ‘Contract Enforcement’.

The ‘Starting a Business’ indicator can be achieved by deregulating the rules on trading licensing, company registration, reporting workers, and employee health insurance. In future, businesses will be able to deal with these matters on a single form at the Integrated One Stop Service (PTSP) units in Jakarta and Surabaya.

The ‘Getting Credit’ indicator will require BKPM to work together with Bank Indonesia (BI) and the Financial Services Authority (OJK).

BKPM will also work together with the Directorate General of Tax so that reports, requests, and payments can be made online, which is more efficient. 

Franky said other than deregulation, BKPM and other ministries and agencies will publicise the deregulations to inform and encourage businesses.

The President has appointed the BKPM Head as coordinator, who will be assisted by the Coordinating Economic Affairs Minister to run the deregulation program and publicise the results.