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Ada Pertanyaan? Hubungi Kami Marcell Sihombing, RED
President Joko Widodo at Merdeka Palace. Photo by: Cabinet Secretariat of the Republic of Indonesia.
The Ministry of Domestic Affairs, acting on behalf of the government, has finally revoked no less than 3,143 regional regulations (peraturan daerah - Perda) which are considered to be hampering the growth of the nation’s regional economies, and by extension, the national economy as a whole. These regulations are believed to encompass lengthy bureaucratic procedures which are resulting in overly burdensome licensing and investment processes. These in turn are obstructing the country’s ease-of-doing-business climate, and also contradict various prevailing higher-level laws and regulations.
“The revocations are intended to turn Indonesia into a great nation supported by a high level of tolerance and competitiveness,” asserted President Joko Widodo during a press conference which was held at Jakarta’s Merdeka Palace on Monday, 13 June 2016.
President Widodo further emphasized the fact that, in order to be considered a great nation, Indonesia must prepare itself by increasing its capacity in readiness to face the fierce competition that exists between countries across the globe. As a consequence of this vision, it is inevitable that Indonesia, as a multicultural country, will also strengthen its tolerance in order to truly reflect the country’s collective spirit of “Unity in Diversity”.
“Through both tolerance and unity, we [Indonesia] will become more prepared to deal with future challenges,” President Widodo emphasized.
This is also the reason underlying the President’s belief in synergy between central government and regional governments, which he ultimately conceives of as a single entity in possession of an identical vision and mission. Moreover, an efficient division of labor in this context is believed to be absolutely essential.
Indonesia’s Minister of Domestic Affairs, Tjahjo Kumolo, further explained that, in essence, the revocations encompass regional regulations which are believed to be hindering both investment and economic growth, and are in line with the government's policy of simplifying various procedures in a bid to stimulate economic growth.
“Thus, we [the Ministry of Domestic Affairs] are intending to cut down lengthy bureaucratic processes at the regional level, as mandated by the various economic policy packages introduced by President Widodo. That is the main point of these revocations,” Minister Kumolo asserted.
Minister Kumolo also pointed out that currently any party who is intending to establish a business within a given region must first jump through a number of licensing hurdles, such as principle licenses, business licenses, building-construction permits (Izin Mendirikan Bangunan - IMB), and disturbance permits. The Minister expressed his belief that the simplification of these processes was urgently required.
“A single business license should be able to cover all of the above licenses and permits, period. The current lengthy procedures really need to be eradicated altogether, including any unnecessary retribution associated with them, while the disturbance permit should be revoked. These practices originated way back during the Dutch colonial era and are outdated. I believe that this is the thinking [behind President Widodo’s policy],” asserted Minister Kumolo.
Minister Kumolo further revealed that almost all of the country’s regions had already taken the initiative to revoke inefficient regional regulations in order to improve the influx of investment.
By way of example, Minister Kumolo pointed to the regional retribution provisions applicable in Lampung, the general-service retribution applicable in Maluku, and the various retributions imposed in North Maluku. A Regional Regulation on the Management of Regionally Owned Goods was also introduced in East Java Province which varies between different regencies such as Malang, Pasuruan, Mojokerto, and Madiun.
“I think that there should be a uniform regulation which applies [across various regions of the country], as currently there are too many [separate] regional regulations covering the same matters,” Minister Kumolo affirmed.
Minister Kumolo also pointed out that retributions which relate to compensation for the printing of Identity Cards (KTP) and Civil Registration Documents will be dropped altogether, because these facilities constitute public service which should thus not have fees imposed upon them by the relevant authorities. Minister Kumolo further revealed that the Ministry of Domestic Affairs has already commanded that there are to be no retributions or fees imposed for the processing of Identity Cards, Birth Certificates, Death Certificates, or Burial Permits. Minister Kumolo confirmed that several licenses were also currently subject to retribution, such as those relating to sales and purchase activities or the issuance of Building Construction Permits (IMBs), however amounts can vary considerably here depending on the parties involved.
“IMB retribution levels differ between low- to middle-income citizens, and middle- to high-income citizens. For example, low-income workers who purchase simple houses costing around IDR 10 million are indeed subject to retribution. However, it would not make sense if the amount of retribution in question was as high as IDR 2 million. The government thus introduced the up-to-95% IMB discount policy. Therefore, legally speaking, low-income workers could pay retribution of only IDR 1 and this would still be legitimate,” explained Minister Kumolo.
Nonetheless, several regional regulations have yet to be revoked, including regulations governing Regional Budgeting (APBD), neighborhood heads (RT/RW), regional taxes, regional retributions, and the Medium- to Long-Term Development Plan (RPJMN). Minister Kumolo reminded the country that all regions must first apply for an evaluation of such regulations by the Minister of Domestic Affairs before they will be allowed to continue to enforce them.
“Regulations governing the aforementioned matters can only be implemented after they have first passed an evaluation process [conducted by the Minister of Domestic Affairs],” Minister Kumolo concluded.
“The revocations are intended to turn Indonesia into a great nation supported by a high level of tolerance and competitiveness,” asserted President Joko Widodo during a press conference which was held at Jakarta’s Merdeka Palace on Monday, 13 June 2016.
President Widodo further emphasized the fact that, in order to be considered a great nation, Indonesia must prepare itself by increasing its capacity in readiness to face the fierce competition that exists between countries across the globe. As a consequence of this vision, it is inevitable that Indonesia, as a multicultural country, will also strengthen its tolerance in order to truly reflect the country’s collective spirit of “Unity in Diversity”.
“Through both tolerance and unity, we [Indonesia] will become more prepared to deal with future challenges,” President Widodo emphasized.
This is also the reason underlying the President’s belief in synergy between central government and regional governments, which he ultimately conceives of as a single entity in possession of an identical vision and mission. Moreover, an efficient division of labor in this context is believed to be absolutely essential.
Indonesia’s Minister of Domestic Affairs, Tjahjo Kumolo, further explained that, in essence, the revocations encompass regional regulations which are believed to be hindering both investment and economic growth, and are in line with the government's policy of simplifying various procedures in a bid to stimulate economic growth.
“Thus, we [the Ministry of Domestic Affairs] are intending to cut down lengthy bureaucratic processes at the regional level, as mandated by the various economic policy packages introduced by President Widodo. That is the main point of these revocations,” Minister Kumolo asserted.
Minister Kumolo also pointed out that currently any party who is intending to establish a business within a given region must first jump through a number of licensing hurdles, such as principle licenses, business licenses, building-construction permits (Izin Mendirikan Bangunan - IMB), and disturbance permits. The Minister expressed his belief that the simplification of these processes was urgently required.
“A single business license should be able to cover all of the above licenses and permits, period. The current lengthy procedures really need to be eradicated altogether, including any unnecessary retribution associated with them, while the disturbance permit should be revoked. These practices originated way back during the Dutch colonial era and are outdated. I believe that this is the thinking [behind President Widodo’s policy],” asserted Minister Kumolo.
Minister Kumolo further revealed that almost all of the country’s regions had already taken the initiative to revoke inefficient regional regulations in order to improve the influx of investment.
By way of example, Minister Kumolo pointed to the regional retribution provisions applicable in Lampung, the general-service retribution applicable in Maluku, and the various retributions imposed in North Maluku. A Regional Regulation on the Management of Regionally Owned Goods was also introduced in East Java Province which varies between different regencies such as Malang, Pasuruan, Mojokerto, and Madiun.
“I think that there should be a uniform regulation which applies [across various regions of the country], as currently there are too many [separate] regional regulations covering the same matters,” Minister Kumolo affirmed.
Minister Kumolo also pointed out that retributions which relate to compensation for the printing of Identity Cards (KTP) and Civil Registration Documents will be dropped altogether, because these facilities constitute public service which should thus not have fees imposed upon them by the relevant authorities. Minister Kumolo further revealed that the Ministry of Domestic Affairs has already commanded that there are to be no retributions or fees imposed for the processing of Identity Cards, Birth Certificates, Death Certificates, or Burial Permits. Minister Kumolo confirmed that several licenses were also currently subject to retribution, such as those relating to sales and purchase activities or the issuance of Building Construction Permits (IMBs), however amounts can vary considerably here depending on the parties involved.
“IMB retribution levels differ between low- to middle-income citizens, and middle- to high-income citizens. For example, low-income workers who purchase simple houses costing around IDR 10 million are indeed subject to retribution. However, it would not make sense if the amount of retribution in question was as high as IDR 2 million. The government thus introduced the up-to-95% IMB discount policy. Therefore, legally speaking, low-income workers could pay retribution of only IDR 1 and this would still be legitimate,” explained Minister Kumolo.
Nonetheless, several regional regulations have yet to be revoked, including regulations governing Regional Budgeting (APBD), neighborhood heads (RT/RW), regional taxes, regional retributions, and the Medium- to Long-Term Development Plan (RPJMN). Minister Kumolo reminded the country that all regions must first apply for an evaluation of such regulations by the Minister of Domestic Affairs before they will be allowed to continue to enforce them.
“Regulations governing the aforementioned matters can only be implemented after they have first passed an evaluation process [conducted by the Minister of Domestic Affairs],” Minister Kumolo concluded.
(hs/sp)
Marcell Sihombing, RED
President Joko Widodo at Merdeka Palace. Photo by: Cabinet Secretariat of the Republic of Indonesia.
The Ministry of Domestic Affairs, acting on behalf of the government, has finally revoked no less than 3,143 regional regulations (peraturan daerah - Perda) which are considered to be hampering the growth of the nation’s regional economies, and by extension, the national economy as a whole. These regulations are believed to encompass lengthy bureaucratic procedures which are resulting in overly burdensome licensing and investment processes. These in turn are obstructing the country’s ease-of-doing-business climate, and also contradict various prevailing higher-level laws and regulations.
“The revocations are intended to turn Indonesia into a great nation supported by a high level of tolerance and competitiveness,” asserted President Joko Widodo during a press conference which was held at Jakarta’s Merdeka Palace on Monday, 13 June 2016.
President Widodo further emphasized the fact that, in order to be considered a great nation, Indonesia must prepare itself by increasing its capacity in readiness to face the fierce competition that exists between countries across the globe. As a consequence of this vision, it is inevitable that Indonesia, as a multicultural country, will also strengthen its tolerance in order to truly reflect the country’s collective spirit of “Unity in Diversity”.
“Through both tolerance and unity, we [Indonesia] will become more prepared to deal with future challenges,” President Widodo emphasized.
This is also the reason underlying the President’s belief in synergy between central government and regional governments, which he ultimately conceives of as a single entity in possession of an identical vision and mission. Moreover, an efficient division of labor in this context is believed to be absolutely essential.
Indonesia’s Minister of Domestic Affairs, Tjahjo Kumolo, further explained that, in essence, the revocations encompass regional regulations which are believed to be hindering both investment and economic growth, and are in line with the government's policy of simplifying various procedures in a bid to stimulate economic growth.
“Thus, we [the Ministry of Domestic Affairs] are intending to cut down lengthy bureaucratic processes at the regional level, as mandated by the various economic policy packages introduced by President Widodo. That is the main point of these revocations,” Minister Kumolo asserted.
Minister Kumolo also pointed out that currently any party who is intending to establish a business within a given region must first jump through a number of licensing hurdles, such as principle licenses, business licenses, building-construction permits (Izin Mendirikan Bangunan - IMB), and disturbance permits. The Minister expressed his belief that the simplification of these processes was urgently required.
“A single business license should be able to cover all of the above licenses and permits, period. The current lengthy procedures really need to be eradicated altogether, including any unnecessary retribution associated with them, while the disturbance permit should be revoked. These practices originated way back during the Dutch colonial era and are outdated. I believe that this is the thinking [behind President Widodo’s policy],” asserted Minister Kumolo.
Minister Kumolo further revealed that almost all of the country’s regions had already taken the initiative to revoke inefficient regional regulations in order to improve the influx of investment.
By way of example, Minister Kumolo pointed to the regional retribution provisions applicable in Lampung, the general-service retribution applicable in Maluku, and the various retributions imposed in North Maluku. A Regional Regulation on the Management of Regionally Owned Goods was also introduced in East Java Province which varies between different regencies such as Malang, Pasuruan, Mojokerto, and Madiun.
“I think that there should be a uniform regulation which applies [across various regions of the country], as currently there are too many [separate] regional regulations covering the same matters,” Minister Kumolo affirmed.
Minister Kumolo also pointed out that retributions which relate to compensation for the printing of Identity Cards (KTP) and Civil Registration Documents will be dropped altogether, because these facilities constitute public service which should thus not have fees imposed upon them by the relevant authorities. Minister Kumolo further revealed that the Ministry of Domestic Affairs has already commanded that there are to be no retributions or fees imposed for the processing of Identity Cards, Birth Certificates, Death Certificates, or Burial Permits. Minister Kumolo confirmed that several licenses were also currently subject to retribution, such as those relating to sales and purchase activities or the issuance of Building Construction Permits (IMBs), however amounts can vary considerably here depending on the parties involved.
“IMB retribution levels differ between low- to middle-income citizens, and middle- to high-income citizens. For example, low-income workers who purchase simple houses costing around IDR 10 million are indeed subject to retribution. However, it would not make sense if the amount of retribution in question was as high as IDR 2 million. The government thus introduced the up-to-95% IMB discount policy. Therefore, legally speaking, low-income workers could pay retribution of only IDR 1 and this would still be legitimate,” explained Minister Kumolo.
Nonetheless, several regional regulations have yet to be revoked, including regulations governing Regional Budgeting (APBD), neighborhood heads (RT/RW), regional taxes, regional retributions, and the Medium- to Long-Term Development Plan (RPJMN). Minister Kumolo reminded the country that all regions must first apply for an evaluation of such regulations by the Minister of Domestic Affairs before they will be allowed to continue to enforce them.
“Regulations governing the aforementioned matters can only be implemented after they have first passed an evaluation process [conducted by the Minister of Domestic Affairs],” Minister Kumolo concluded.
“The revocations are intended to turn Indonesia into a great nation supported by a high level of tolerance and competitiveness,” asserted President Joko Widodo during a press conference which was held at Jakarta’s Merdeka Palace on Monday, 13 June 2016.
President Widodo further emphasized the fact that, in order to be considered a great nation, Indonesia must prepare itself by increasing its capacity in readiness to face the fierce competition that exists between countries across the globe. As a consequence of this vision, it is inevitable that Indonesia, as a multicultural country, will also strengthen its tolerance in order to truly reflect the country’s collective spirit of “Unity in Diversity”.
“Through both tolerance and unity, we [Indonesia] will become more prepared to deal with future challenges,” President Widodo emphasized.
This is also the reason underlying the President’s belief in synergy between central government and regional governments, which he ultimately conceives of as a single entity in possession of an identical vision and mission. Moreover, an efficient division of labor in this context is believed to be absolutely essential.
Indonesia’s Minister of Domestic Affairs, Tjahjo Kumolo, further explained that, in essence, the revocations encompass regional regulations which are believed to be hindering both investment and economic growth, and are in line with the government's policy of simplifying various procedures in a bid to stimulate economic growth.
“Thus, we [the Ministry of Domestic Affairs] are intending to cut down lengthy bureaucratic processes at the regional level, as mandated by the various economic policy packages introduced by President Widodo. That is the main point of these revocations,” Minister Kumolo asserted.
Minister Kumolo also pointed out that currently any party who is intending to establish a business within a given region must first jump through a number of licensing hurdles, such as principle licenses, business licenses, building-construction permits (Izin Mendirikan Bangunan - IMB), and disturbance permits. The Minister expressed his belief that the simplification of these processes was urgently required.
“A single business license should be able to cover all of the above licenses and permits, period. The current lengthy procedures really need to be eradicated altogether, including any unnecessary retribution associated with them, while the disturbance permit should be revoked. These practices originated way back during the Dutch colonial era and are outdated. I believe that this is the thinking [behind President Widodo’s policy],” asserted Minister Kumolo.
Minister Kumolo further revealed that almost all of the country’s regions had already taken the initiative to revoke inefficient regional regulations in order to improve the influx of investment.
By way of example, Minister Kumolo pointed to the regional retribution provisions applicable in Lampung, the general-service retribution applicable in Maluku, and the various retributions imposed in North Maluku. A Regional Regulation on the Management of Regionally Owned Goods was also introduced in East Java Province which varies between different regencies such as Malang, Pasuruan, Mojokerto, and Madiun.
“I think that there should be a uniform regulation which applies [across various regions of the country], as currently there are too many [separate] regional regulations covering the same matters,” Minister Kumolo affirmed.
Minister Kumolo also pointed out that retributions which relate to compensation for the printing of Identity Cards (KTP) and Civil Registration Documents will be dropped altogether, because these facilities constitute public service which should thus not have fees imposed upon them by the relevant authorities. Minister Kumolo further revealed that the Ministry of Domestic Affairs has already commanded that there are to be no retributions or fees imposed for the processing of Identity Cards, Birth Certificates, Death Certificates, or Burial Permits. Minister Kumolo confirmed that several licenses were also currently subject to retribution, such as those relating to sales and purchase activities or the issuance of Building Construction Permits (IMBs), however amounts can vary considerably here depending on the parties involved.
“IMB retribution levels differ between low- to middle-income citizens, and middle- to high-income citizens. For example, low-income workers who purchase simple houses costing around IDR 10 million are indeed subject to retribution. However, it would not make sense if the amount of retribution in question was as high as IDR 2 million. The government thus introduced the up-to-95% IMB discount policy. Therefore, legally speaking, low-income workers could pay retribution of only IDR 1 and this would still be legitimate,” explained Minister Kumolo.
Nonetheless, several regional regulations have yet to be revoked, including regulations governing Regional Budgeting (APBD), neighborhood heads (RT/RW), regional taxes, regional retributions, and the Medium- to Long-Term Development Plan (RPJMN). Minister Kumolo reminded the country that all regions must first apply for an evaluation of such regulations by the Minister of Domestic Affairs before they will be allowed to continue to enforce them.
“Regulations governing the aforementioned matters can only be implemented after they have first passed an evaluation process [conducted by the Minister of Domestic Affairs],” Minister Kumolo concluded.
(hs/sp)