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resident Joko '€œJokowi'€ Widodo called on leaders nationwide to improve business licensing procedures and cut bureaucracy to support the central government'€™s efforts to boost investment in the country.

Jokowi made the statement at the State Palace on Wednesday at a gathering with governors, regents and mayors to ensure local administrations followed the government'€™s lead in easing business procedures.

'€œThe central government has cut business licensing to three hours. Regions must catch up with it [the government'€™s efforts to boost ease of doing business],'€ Jokowi said. '€œWe have to be able to keep up with the pace of other countries. If we follow old patterns, don'€™t expect our economy to improve.'€

Jokowi was referring to the three-hour business permit issuance for companies in industrial parks, which was among a number of deregulation measures introduced by the government recently. His administration has thus far introduced four economic stimulus packages as part of an effort to boost investment. The packages also include a number of improvements in licensing for investment in the forestry sector, a new formula for the annual rise in the minimum wage to prevent layoffs deriving from the domestic economic slowdown and tax incentives for the transportation industry.

Coordinating Economic Minister Darmin Nasution said during the event that the three-hour business licensing, along with other deregulation measures, was a tool '€œto convince the market, businesspeople and international players'€.

'€œWith the involvement of local administrations [in simplifying business licensing], I believe we can build stable [market and public] trust,'€ he added.

Cabinet Secretary Pramono Anung said that local administrations should understand the importance of their roles in supporting the central government'€™s efforts.

'€œSince some licensing procedures are under the authority of local administrations, local regions will hamper the central government'€™s efforts [in improving ease of doing business] if they cannot match the [new] pace,'€ he said.

The government had also mulled taking over some local administrations'€™ licensing authorities and putting them under the one-stop integrated service (PTSP) at the Investment Coordinating Board (BKPM), he added.

According to Pramono, local leaders mainly asked the government to hand over road management.

East Kalimantan Governor Awang Faroek said his administration had sped up a number of business licensing procedures, adding that overlapping authorities between the central and local governments had become a stumbling block for obtaining permits, for example, in the transportation and forestry sectors.

'€œIf they fully entrust those to the governors; we can improve the speed of business licensing,'€ he said.

Bandung Mayor Ridwan Kamil said he proposed allowing small-and-medium enterprises to start operating without permits.

'€œInstead of permits, it would be better for them to only be required to notify the authorities that they are starting operations so that economic activities can start,'€ he said.

Jokowi also reminded local leaders of an instruction he issued in August permitting public officials to use their discretion in spending regional budgets as long as it was in the public interest, in his effort to speed up capital expenditure this year.

The Office of Coordinating Political, Legal and Security Affairs Minister will monitor the use of the budgets while the Attorney General'€™s Office has established a team to provide assistance and consultation for public officials.