Indonesia is continuesly trying to attract foreign investors to come and invest in the country by improving the Ease of Doing Business (EODB). One of the main focus for this year improvement is to cut the procedures of Starting a Business, one of the EODB indicators.
Based on World Bank Ease of Doing Business (EoDB) 2020, Indonesia ranks 73rd out of 190 countries surveyed. Some indicators that Indonesia’s still has large room for improvement include Starting a Business, Construction Permit, Property Registration, Cross-Border Trade, and Law Enforcement of Contracts.
President Jokowi challenge the BKPM Chairman Bahlil Lahadalia to improve the EODB rank to 50th place and the challenge accepted by Bahlil by stating willingness to resign from his position in the cabinet as Chairman of BKPM.
“If I can’t meet that target, I’m ready to step down. That is my moral commitment. If a public official can’t contribute positively to the country, they must resign. Don’t be a burden on the country,” said Bahlil in one particular occasion.
Acting Deputy for Investment Climate Development BKPM Yuliot added Chairman BKPM has assign a special team to monitor and developing a reform program for 11 EoDB indicators to optimize investment in Indonesia.
“One of the indicators that concerns us is Starting a Business. Indonesia is in the 140th position in the indicator. We will drastically cut the procedures from the previous 11 procedures to only 3 procedures,” Yuliot said in his statement, early of March.
In addition to starting a business, other indicators concerned the Government are Dealing with Construction Permits and Registering Property. According to Yuliot, the indicators have procedures that need to be adjusted to be more effective and efficient.
“For example, construction permits from 18 procedures with 191 days to 5 procedures with 21 days. Property registration also previously had 6 procedures with about 1 month
to only 3 procedures with less than 1 week,” he added.
Yuliot highlight other indicator that received massive negative feedback from investor. “It was Enforcing Contracts or contract enforcement. Indonesia in ranks 139th for this indicator,” he asserted.
The government made significant changes in the contract enforcement indicators by reducing the time needed from 1 year to only 43 days. “The Supreme Court has made regulations and improved the implementation of a simple court with the shortest possible process until only requires a maximum of 43 days,” he continued. (*)