The latest Indonesian economic policy will wimply that investors only have to go to one place to obtain all required licenses. This is much-needed because in some secotrs it can take up to five years to arrange all permits.
The new policy package is a breakthrough for improving the ease of investing and business in Indonesia. Provided that the actual implementation of the package goeas smoothly, Indoensia could rise into the top 50 within the World Bank’s Ease of Doing Business ranking in 2018.
16th Indonesian economic policy package: Single Submission System
Indonesian President Joko Widodo unveiled the 16th economic policy package at the Indonesia stock Exchange building in Jakarta. This latest package aims to create an integrated licensing system. It also deals with strict supervision for the transition from the manual licensing system to an online system.
This should lead to an acceleration of the business licenses issuing process, and provide certainty to investors about the length (of time) and costs in the licensing process. Meanwhile, the new package also aims to utilize information technology through the application of a single permission system. Lastly, coordination and cooperation between various ministries and other government agencies, both on the local and central level, need to be improved.
The Indonesian Chamber of Commerce and Industry (Kadin Indonesia) said it will oversee the implementation of the latest economic policy package, labelled “Acceleration of Entrepreneurship”, up to the regions across Indonesia. Rosan Roeslani, Chairman of Kadin Indonesia, said a significant portion of domestic and foreign direct investment goes to the regions. Therefore, the key to more successful investments lies in the regions.
Overall, the latest policy package is a breakthrough for improving the ease of investing and business in Indonesia. Provided that the actual implementation of the package goes smoothly, Indonesia could rise into the top 50 within the World Bank’s Ease of Doing Business ranking in 2018. Meanwhile, Indonesia’s competitiveness index could increase to the top 30 next year with a more efficient and business-friendly bureaucracy.
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