OVERVIEW

Indonesia’s bureaucracy system continues to be an endless subject of discussion due to the unsatisfactory quality of the service it provides to the public. In 2010, not surprisingly, the Political and Economic Risk Consultancy (PERC) named Indonesia as the country with the worst bureaucracy system amongst the Asian nations.[1] Besides being associated with corruption, complex bureaucracy processes and poor public service, Indonesian bureaucracy has also negatively affected national business through its hampering of national industrial development.[2]

In response to this situation, The House of Representative (“House”) passed the Bill on State Aparatus (“Bill”) on 19 December 2013.[3] The Bill will repeal and replace Law No. 8 of 1974on Officialdom, as amended by Law No. 43 of 1999(“Officialdom Law”), which was considered outdated and no longer appropriate to address the current needs of the public. It is hoped the Bill will accelerate the reform of the national bureaucracy by the Minister of State Apparatus and Bureaucracy Reform (“Minister”).