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Ada Pertanyaan? Hubungi Kami Marcell Sihombing,RED
President Joko Widodo. Photo by: RES.
President Joko Widodo recently expressed his disapproval at Indonesia’s lowly position on the 2016 Ease of Doing Business (EODB) survey, despite the country successfully improving its ranking by 11 positions, from 120th to 109th out of a total of 189 countries. The President conveyed his regret that Indonesia still lags way behind many other ASEAN member countries as regards ease of doing business, especially Singapore, which currently ranks first on the 2016 EODB survey.
Indeed the latest EODB survey, which was compiled by the World Bank Group, reveals that several ASEAN member countries rank higher than Indonesia. These include Singapore (firstposition), Malaysia (18th position), Thailand (49th position), Brunei Darussalam (84th position), Vietnam (90th position), and the Philippines (103rd position).
“Indonesia currently ranks fourth in terms of its global-competitiveness within the Asian region, meaning that we fall behind Malaysia, Thailand, and of course way behind Singapore,” asserted President Widodo, as quoted on the official website of the Secretariat of the Cabinet on Saturday, 9 April 2016.
Demanding further improvement to this poor showing, President Widodo has just announced that Indonesia must advance to 40th position in the 2017 EODB survey, and has also demanded support from all regions across the country in his quest to achieve this ambitious goal, be they provinces, regencies, or cities.
As the country struggles to meet this target, President Widodo has pointed out that at present there are 42,000 prevailing regulations covering the business sector, and that this huge amount of regulations comprise a monolithic bureaucracy which is hampering economic growth. By way of example, the president revealed that parties wishing to build powerplants within Indonesia are hugely impeded by matters relating to licensing and land procurement.
“Fifty-nine types of licenses are currently required in order to establish a powerplant here, and these can take between two and six years to process. In this context, it is not difficult to see why our country often experiences blackouts. Many investors are in fact willing to pour funds into the country, however the many licensing procedures are far too long-winded,” claimed the President.
“So, what can we do to achieve this goal? Well a simplified regulatory framework must be established, and this should comprise of regulations designed to streamline the various procedures which have to be adhered to by parties seeking to establish businesses here, especially micro-, small- and medium-scale businesses (UMKM). Potential investors should not be deterred by the huge amount of regulations,” asserted President Widodo.
President Widodo further reminded all heads of regional government, including those located in the country’s various provinces, regencies, cities and villages, to implement a deregulation program and repeal any unnecessary licenses. According to President Widodo, regional-level regulations (Peraturan Daerah - Perda) should aim to encourage investors and simplify the process for starting up businesses and realizing investments. In this context, the president hopes that both central and regional governments can implement a uniform standard. By way of example, the president asserted that if a trade business license (Surat Izin Usaha Perdagangan – SIUP) application can be processed within one hour by the central government, then the same timeframe should also apply to regional governments.
Moreover, President Widodo also asserted that the government should facilitate the issuance of licenses relating to micro-, small- and medium-scale businesses, as well as domestic and foreign investors, and that this will in turn generate more employment opportunities for the Indonesian workforce. The president makes it clear in his statement that he doesn’t see the wisdom in implementing 42,000 types of licenses and 3,000 problematic Perda.
The president has also reaffirmed the government’s commitment to repealing any licensing procedures which could end up deterring investment in the country. By way of example, the processing of SIUPs and Company Registration Certificates (Tanda Daftar Perusahaan - TDP) is now undertaken by a single institution. President Widodo’s statement expressed his ultimate hope that licensing procedures can be streamlined and that in the future, applications can be completed within a matter of days instead of months.
“We must focus our energies on this task [of simplifying the regulatory framework] if we want to beat our competitors. However, if we wish to remain losers and failures, then we can always persevere with our long-winded practices and slow-moving bureaucracies,” the president concluded unequivocally.
Indeed the latest EODB survey, which was compiled by the World Bank Group, reveals that several ASEAN member countries rank higher than Indonesia. These include Singapore (firstposition), Malaysia (18th position), Thailand (49th position), Brunei Darussalam (84th position), Vietnam (90th position), and the Philippines (103rd position).
“Indonesia currently ranks fourth in terms of its global-competitiveness within the Asian region, meaning that we fall behind Malaysia, Thailand, and of course way behind Singapore,” asserted President Widodo, as quoted on the official website of the Secretariat of the Cabinet on Saturday, 9 April 2016.
Demanding further improvement to this poor showing, President Widodo has just announced that Indonesia must advance to 40th position in the 2017 EODB survey, and has also demanded support from all regions across the country in his quest to achieve this ambitious goal, be they provinces, regencies, or cities.
As the country struggles to meet this target, President Widodo has pointed out that at present there are 42,000 prevailing regulations covering the business sector, and that this huge amount of regulations comprise a monolithic bureaucracy which is hampering economic growth. By way of example, the president revealed that parties wishing to build powerplants within Indonesia are hugely impeded by matters relating to licensing and land procurement.
“Fifty-nine types of licenses are currently required in order to establish a powerplant here, and these can take between two and six years to process. In this context, it is not difficult to see why our country often experiences blackouts. Many investors are in fact willing to pour funds into the country, however the many licensing procedures are far too long-winded,” claimed the President.
“So, what can we do to achieve this goal? Well a simplified regulatory framework must be established, and this should comprise of regulations designed to streamline the various procedures which have to be adhered to by parties seeking to establish businesses here, especially micro-, small- and medium-scale businesses (UMKM). Potential investors should not be deterred by the huge amount of regulations,” asserted President Widodo.
President Widodo further reminded all heads of regional government, including those located in the country’s various provinces, regencies, cities and villages, to implement a deregulation program and repeal any unnecessary licenses. According to President Widodo, regional-level regulations (Peraturan Daerah - Perda) should aim to encourage investors and simplify the process for starting up businesses and realizing investments. In this context, the president hopes that both central and regional governments can implement a uniform standard. By way of example, the president asserted that if a trade business license (Surat Izin Usaha Perdagangan – SIUP) application can be processed within one hour by the central government, then the same timeframe should also apply to regional governments.
Moreover, President Widodo also asserted that the government should facilitate the issuance of licenses relating to micro-, small- and medium-scale businesses, as well as domestic and foreign investors, and that this will in turn generate more employment opportunities for the Indonesian workforce. The president makes it clear in his statement that he doesn’t see the wisdom in implementing 42,000 types of licenses and 3,000 problematic Perda.
The president has also reaffirmed the government’s commitment to repealing any licensing procedures which could end up deterring investment in the country. By way of example, the processing of SIUPs and Company Registration Certificates (Tanda Daftar Perusahaan - TDP) is now undertaken by a single institution. President Widodo’s statement expressed his ultimate hope that licensing procedures can be streamlined and that in the future, applications can be completed within a matter of days instead of months.
“We must focus our energies on this task [of simplifying the regulatory framework] if we want to beat our competitors. However, if we wish to remain losers and failures, then we can always persevere with our long-winded practices and slow-moving bureaucracies,” the president concluded unequivocally.
(rfs/sp)
Marcell Sihombing,RED
President Joko Widodo. Photo by: RES.
President Joko Widodo recently expressed his disapproval at Indonesia’s lowly position on the 2016 Ease of Doing Business (EODB) survey, despite the country successfully improving its ranking by 11 positions, from 120th to 109th out of a total of 189 countries. The President conveyed his regret that Indonesia still lags way behind many other ASEAN member countries as regards ease of doing business, especially Singapore, which currently ranks first on the 2016 EODB survey.
Indeed the latest EODB survey, which was compiled by the World Bank Group, reveals that several ASEAN member countries rank higher than Indonesia. These include Singapore (firstposition), Malaysia (18th position), Thailand (49th position), Brunei Darussalam (84th position), Vietnam (90th position), and the Philippines (103rd position).
“Indonesia currently ranks fourth in terms of its global-competitiveness within the Asian region, meaning that we fall behind Malaysia, Thailand, and of course way behind Singapore,” asserted President Widodo, as quoted on the official website of the Secretariat of the Cabinet on Saturday, 9 April 2016.
Demanding further improvement to this poor showing, President Widodo has just announced that Indonesia must advance to 40th position in the 2017 EODB survey, and has also demanded support from all regions across the country in his quest to achieve this ambitious goal, be they provinces, regencies, or cities.
As the country struggles to meet this target, President Widodo has pointed out that at present there are 42,000 prevailing regulations covering the business sector, and that this huge amount of regulations comprise a monolithic bureaucracy which is hampering economic growth. By way of example, the president revealed that parties wishing to build powerplants within Indonesia are hugely impeded by matters relating to licensing and land procurement.
“Fifty-nine types of licenses are currently required in order to establish a powerplant here, and these can take between two and six years to process. In this context, it is not difficult to see why our country often experiences blackouts. Many investors are in fact willing to pour funds into the country, however the many licensing procedures are far too long-winded,” claimed the President.
“So, what can we do to achieve this goal? Well a simplified regulatory framework must be established, and this should comprise of regulations designed to streamline the various procedures which have to be adhered to by parties seeking to establish businesses here, especially micro-, small- and medium-scale businesses (UMKM). Potential investors should not be deterred by the huge amount of regulations,” asserted President Widodo.
President Widodo further reminded all heads of regional government, including those located in the country’s various provinces, regencies, cities and villages, to implement a deregulation program and repeal any unnecessary licenses. According to President Widodo, regional-level regulations (Peraturan Daerah - Perda) should aim to encourage investors and simplify the process for starting up businesses and realizing investments. In this context, the president hopes that both central and regional governments can implement a uniform standard. By way of example, the president asserted that if a trade business license (Surat Izin Usaha Perdagangan – SIUP) application can be processed within one hour by the central government, then the same timeframe should also apply to regional governments.
Moreover, President Widodo also asserted that the government should facilitate the issuance of licenses relating to micro-, small- and medium-scale businesses, as well as domestic and foreign investors, and that this will in turn generate more employment opportunities for the Indonesian workforce. The president makes it clear in his statement that he doesn’t see the wisdom in implementing 42,000 types of licenses and 3,000 problematic Perda.
The president has also reaffirmed the government’s commitment to repealing any licensing procedures which could end up deterring investment in the country. By way of example, the processing of SIUPs and Company Registration Certificates (Tanda Daftar Perusahaan - TDP) is now undertaken by a single institution. President Widodo’s statement expressed his ultimate hope that licensing procedures can be streamlined and that in the future, applications can be completed within a matter of days instead of months.
“We must focus our energies on this task [of simplifying the regulatory framework] if we want to beat our competitors. However, if we wish to remain losers and failures, then we can always persevere with our long-winded practices and slow-moving bureaucracies,” the president concluded unequivocally.
Indeed the latest EODB survey, which was compiled by the World Bank Group, reveals that several ASEAN member countries rank higher than Indonesia. These include Singapore (firstposition), Malaysia (18th position), Thailand (49th position), Brunei Darussalam (84th position), Vietnam (90th position), and the Philippines (103rd position).
“Indonesia currently ranks fourth in terms of its global-competitiveness within the Asian region, meaning that we fall behind Malaysia, Thailand, and of course way behind Singapore,” asserted President Widodo, as quoted on the official website of the Secretariat of the Cabinet on Saturday, 9 April 2016.
Demanding further improvement to this poor showing, President Widodo has just announced that Indonesia must advance to 40th position in the 2017 EODB survey, and has also demanded support from all regions across the country in his quest to achieve this ambitious goal, be they provinces, regencies, or cities.
As the country struggles to meet this target, President Widodo has pointed out that at present there are 42,000 prevailing regulations covering the business sector, and that this huge amount of regulations comprise a monolithic bureaucracy which is hampering economic growth. By way of example, the president revealed that parties wishing to build powerplants within Indonesia are hugely impeded by matters relating to licensing and land procurement.
“Fifty-nine types of licenses are currently required in order to establish a powerplant here, and these can take between two and six years to process. In this context, it is not difficult to see why our country often experiences blackouts. Many investors are in fact willing to pour funds into the country, however the many licensing procedures are far too long-winded,” claimed the President.
“So, what can we do to achieve this goal? Well a simplified regulatory framework must be established, and this should comprise of regulations designed to streamline the various procedures which have to be adhered to by parties seeking to establish businesses here, especially micro-, small- and medium-scale businesses (UMKM). Potential investors should not be deterred by the huge amount of regulations,” asserted President Widodo.
President Widodo further reminded all heads of regional government, including those located in the country’s various provinces, regencies, cities and villages, to implement a deregulation program and repeal any unnecessary licenses. According to President Widodo, regional-level regulations (Peraturan Daerah - Perda) should aim to encourage investors and simplify the process for starting up businesses and realizing investments. In this context, the president hopes that both central and regional governments can implement a uniform standard. By way of example, the president asserted that if a trade business license (Surat Izin Usaha Perdagangan – SIUP) application can be processed within one hour by the central government, then the same timeframe should also apply to regional governments.
Moreover, President Widodo also asserted that the government should facilitate the issuance of licenses relating to micro-, small- and medium-scale businesses, as well as domestic and foreign investors, and that this will in turn generate more employment opportunities for the Indonesian workforce. The president makes it clear in his statement that he doesn’t see the wisdom in implementing 42,000 types of licenses and 3,000 problematic Perda.
The president has also reaffirmed the government’s commitment to repealing any licensing procedures which could end up deterring investment in the country. By way of example, the processing of SIUPs and Company Registration Certificates (Tanda Daftar Perusahaan - TDP) is now undertaken by a single institution. President Widodo’s statement expressed his ultimate hope that licensing procedures can be streamlined and that in the future, applications can be completed within a matter of days instead of months.
“We must focus our energies on this task [of simplifying the regulatory framework] if we want to beat our competitors. However, if we wish to remain losers and failures, then we can always persevere with our long-winded practices and slow-moving bureaucracies,” the president concluded unequivocally.
(rfs/sp)