Fitri Novia Heriani, Andin Aditya Rahman
The Indonesian Chamber of Commerce and Industry (KADIN) has applaudedthe Government’s plan to simplify investment licensing procedures. It is more common to hear KADIN members complaining about the lengthy and expensive licensing procedures for investment activities in Indonesia. In a few regions, for example, the licensing process can take six months to two years.
“KADIN appreciates steps taken by the Government to trim licensing procedures and to make them simpler,” stated Natsir Mansyur, KADIN Vice Chairman for the regional development sector, in a press release received by Hukumonline on Monday.
Natsir stated that the purpose of such cuts to licensing procedures is to expedite investments to facilitate achieving the targeted Indonesian economic growth of 6.3 percent in 2013. He also added that simpler licensing procedures are generally good for businesses in Indonesia.
Nevertheless, KADIN reminded the Government to pay close attention to problems in a few technical Ministries that often complicate investment procedures.
“It is common that investors that are going to invest, even those that have already secured a license, fail to realize their investment plans due to policies from ministries and directorate generals,” Natsir explained.
To prove such problems exist, KADIN conducted a survey of policies issued by these governmental institutions. According to Natsir, KADIN estimates a total of 120 policies from various ministries and directorate generals need to be reviewed and are not up-to-date.
“However, we areoptimistic that the Coordinating Ministry for Economic Affairs can overcome this problem so that the flow of investments is properly absorbed and increases,” concluded Natsir.
The Coordinating Ministry for Economic Affairs itself has issued a regulation on one stop services for licensing process, commonly known as Pelayanan Terpadu Satu Pintu (PTSP). Under this system, licensing procedures are handled by a single institution to reduce costs and the time taken to processlicense applications.
(hot/kc)
Fitri Novia Heriani, Andin Aditya Rahman
The Indonesian Chamber of Commerce and Industry (KADIN) has applaudedthe Government’s plan to simplify investment licensing procedures. It is more common to hear KADIN members complaining about the lengthy and expensive licensing procedures for investment activities in Indonesia. In a few regions, for example, the licensing process can take six months to two years.
“KADIN appreciates steps taken by the Government to trim licensing procedures and to make them simpler,” stated Natsir Mansyur, KADIN Vice Chairman for the regional development sector, in a press release received by Hukumonline on Monday.
Natsir stated that the purpose of such cuts to licensing procedures is to expedite investments to facilitate achieving the targeted Indonesian economic growth of 6.3 percent in 2013. He also added that simpler licensing procedures are generally good for businesses in Indonesia.
Nevertheless, KADIN reminded the Government to pay close attention to problems in a few technical Ministries that often complicate investment procedures.
“It is common that investors that are going to invest, even those that have already secured a license, fail to realize their investment plans due to policies from ministries and directorate generals,” Natsir explained.
To prove such problems exist, KADIN conducted a survey of policies issued by these governmental institutions. According to Natsir, KADIN estimates a total of 120 policies from various ministries and directorate generals need to be reviewed and are not up-to-date.
“However, we areoptimistic that the Coordinating Ministry for Economic Affairs can overcome this problem so that the flow of investments is properly absorbed and increases,” concluded Natsir.
The Coordinating Ministry for Economic Affairs itself has issued a regulation on one stop services for licensing process, commonly known as Pelayanan Terpadu Satu Pintu (PTSP). Under this system, licensing procedures are handled by a single institution to reduce costs and the time taken to processlicense applications.
(hot/kc)