The government was asked to
quickly make various efforts to overcome investment barriers and to improve the
ease of doing business in the country. A number of business considered that the
government was slow to respond to the result of rating surveys for ease of
doing business or Doing Business in Indonesia. If in the Doing Business in
2013, Indonesia was ranked 128th, now only increased 8 ranks in
doing Business 2014 which occupied rank 120 of 189 countries surveyed. Based on
data on Doing Business 2014, Indonesia was ranked the seventh among ASEAN
member countries, or below Singapore (rank 1), Malaysia (6), Thailand (18),
Brunei Darussalam (59), Vietnam (99), and Philippines (108).
Chris Kanter, Vice Chairman of the Indonesian Chamber of
Commerce and industry (KADIN Indonesia) for investment Affairs, Communications,
Information Technology and Telecommunications, in Jakarta, on Wednesday
(October 29), welcomed the plan of President Joko Widodo (Jokowi) to facilitate
licensing and bureaucracy. This will certainly make it easier for entrepreneurs
to do business in Indonesia. Chris said the licensing issue has been existed
since long ago. In fact, entrepreneurs in Indonesia have long complained about
bureaucracy and licensing issues.
According to Chris, so far entrepreneurs are always faced
with a number of complicated bureaucracy regulations and licensing. these
problems should be described one by one and carefully simplified and should be
in control. The issues of licensing and bureaucracy problem is considered by
Chris to be a major problem that inhibits industry growth in Indonesia.
He said that in the future, the government should focus
on industries that are able to enter the international arena. And, industries
in the country should also be able to deal with overseas products that benefit
from the Indonesian market. Chris is optimistic that in this new administration
era, ease of licensing process and bureaucracy can be implemented immediately.
Moreover, President Jokowi was originally a businessman, so he understands the
problems faced by entrepreneurs in Indonesia.
According to him, an integrated service and speed of the
investment process is very important to encourage connectivity. So, it will
ultimately improve Indonesia’s competitiveness in the ASEAN free trade that
will soon take effect. Faster investment process will help the trading system
and national logistics system. He sees that so far, permit obtainment is a
contributing factor to investment barriers. He hoped that all the mechanism
made are able to manage all business licenses, including Small and Medium
Enterprises (SMEs). So that employers, especially small and medium enterprises,
will be able to carry out the licenses properly.
Meanwhile, economist from the Gadjah Mada University
(UGM), Sri Adningsih, said that during the administration of President Susilo
Bambang Yudhoyono, there has been no improvement in investment service looking
at Indonesia’s ranking in Doing Business. But, there are many employers who
complain that licensing is considered long, complicated, and expensive.
Adiningsih hoped that licensing procedures and
bureaucracy for entrepreneurs who will invest will revive attention. So that
Indonesia will not be less competitive than Malaysia and Thailand. According to
him, currently, licensing and bureaucracy in Indonesia is still under Malaysia
and Thailand, even very farm from Singapore. To balance the two countries, he
said that licensing and bureaucracy issues must be completed within one week.
And, it is free of costs. Because there are many revenues from other sectors.
(E)
Business News - October 31, 2014
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