President Joko âJokowiâ Widodo aims to achieve what has eluded past leaders, including Soeharto who ruled for more than three decades with an iron fist
resident Joko 'Jokowi' Widodo aims to achieve what has eluded past leaders, including Soeharto who ruled for more than three decades with an iron fist. He is determined to expedite business licensing by streamlining arduous procedures and overlapping rules and transforming the Investment Coordinating Board (BKPM) into a fully fledged, one-stop licensing center for investment.
Jokowi pushed the start button for the reform drive when he made an impromptu inspection of the BKPM on Tuesday, only a day after he installed his Working Cabinet.
This reform is quite strategic because Jokowi, formerly a businessman, fully realizes that given the severely limited fiscal space his government faces, he needs to reinvigorate private investment for economic pump priming to implement his vision and mission in the best interests of the people.
But this reform is not a piece of cake because within the perspective of the country's public administration, which is perceived to be one of the most corrupt in the world, licensing authority means the power to collect rent.
Jokowi though, knows the social and political climate is now quite conducive for this drive as there has been broad-based popular sentiment pressing for good governance that demands leadership, which is able to translate such massive dissatisfaction into concrete programs.
Hence, the new President is providing leadership to improve the chronic condition as Indonesia is notorious for its complicated business licensing and has always ranked in the 30th lowest batch of almost 190 countries surveyed annually by the World Bank for its Ease of Doing Business index. The World Bank recognizes the improvements Indonesia has made, but says they are not enough.
Quick, clean and efficient business/investment licensing could be the first best thing that will happen to the business community soon because the reform does not require Jokowi to navigate the political minefield at the House of Representatives, where his coalition of supporting parties is in the minority.
However, reform at the BKPM is not enough because this agency only handles licenses at the central government level, while businesses and investors also have to obtain numerous permits from regional governments.
The problem, though, is that regional investment offices (BKPMD) are not under the oversight of the Jakarta-based BKPM but under the jurisdiction of regional governments.
Jokowi, therefore, needs to arrange a national conference with all regional leaders (governors, regents and mayors) in Jakarta to brief them on the new government mission and enlighten them on the great benefits of more expedient business licensing for the people.
Especially now as all leaders, from the President to governors, regents and mayors, have to compete in direct elections, economic records that directly benefit the people are surely the most effective means of gaining voters' support.
Jokowi possesses all the credentials to tell regional leaders that good governance, an ability to bolster local economies and good communications with the people are the best ways of getting reelected.
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