Business plays an important role in improving a country’s economy, including Indonesia. It provides goods, services, and even job opportunities. But it takes high ease of doing business in a country so that people can do their business with more “spaces” to move around. Ease of doing business refers to an index to measure regulations that affect businesses.
So, as the index is higher, the ease of doing business Indonesia will increase too. To give you a glimpse about the ease of doing business in Indonesia, here are several important facts you need to know.
Among 190 economies in the ease of doing business, Indonesia ranks in the 73rd place. Some of you might think that this is quite a great number, but the rank of Indonesia deteriorates. In 2017, Indonesia ranked in the 72nd place. But the country has moved down one place in the World Bank’s
Ease of Doing Business Index for 2019. It might not seem like a big deal, but it goes against Presiden Joko Widodo (Jokowi)’s expectation. President Jokowi projected that the ease of doing business Indonesia would improve to 40th place this year. Based on the official report, Indonesia scores 67.96 out of 100. The country experiences an increase of 1.42 point, but the increase is lower than last year when the score increases 2.25 points to 66.54.
Ten indicators are used to assess the ease of doing a business of each country. Unfortunately, the ease of doing business Indonesia deteriorates because four out of ten indicators have jumped down. These indicators include construction permit (from 108 to 112), protecting minority investors (from 43 to 51), cross-border trade (from 112 to 116), and contract enforcement (from 145 to 146).
However, Indonesia seems to be doing well in several other indicators such as starting businesses (from 144 to 134), registering property (from 106 to 100), and attaining credit (from 55 to 44).
Even though the ease of doing business Indonesia has jumped down to 73rd from 72nd place, that doesn’t mean the country’s doing worse than before. Indonesia has made progress in several sectors. Since Jokowi became a president in 2014, the regulatory environment for businesses in Indonesia has improved.
For instance, Indonesia issues new regulations that make obtaining credit and starting a business easier for businesses. The regulation also allows people to get electricity at a cheaper price and register a property for their businesses. Moreover, Indonesia has also successfully reformed its judiciary system which results in a decrease in court backlogs and insolvency case resolution times.
There’s still a chance for Indonesia to improve its rank in the ease of doing business. Let’s hope there will be more regulations that support businesses so that the ease of doing business Indonesia will increase. In the meantime, just keep doing what you do best, which is to grow your business.