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Deregulation impacts to be felt in 2016, says minister
Economic plans: President Joko âJokowiâ Widodo (center) announces a major economic deregulation policy with his ministers and staff backing him up at the State Palace on Wednesday, Sept
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Economic plans: President Joko âJokowiâ Widodo (center) announces a major economic deregulation policy with his ministers and staff backing him up at the State Palace on Wednesday, Sept. 9. (kompas.com) (center) announces a major economic deregulation policy with his ministers and staff backing him up at the State Palace on Wednesday, Sept. 9. (kompas.com)
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span class="caption">Economic plans: President Joko 'Jokowi' Widodo (center) announces a major economic deregulation policy with his ministers and staff backing him up at the State Palace on Wednesday, Sept. 9. (kompas.com)
The government predicts that the impact of its deregulation policies will be seen in the first semester of 2016, as most economic policy packages begin to effect the economy three or six months after their launch.
Coordinating Economic Affairs Minister Darmin Nasution said the stimulus policies were aimed at addressing short-, medium- and long-term problems in the sluggish economy. All seven economic packages are in action now as the minister has signed 90 percent of the regulation and deregulation measures they contain.
"No immediate impact, but some of the effects will be seen in the first semester of 2016. For example, [the new policy on] liquefied petroleum gas [LPG] converters for fishermen will be implemented next year," said Darmin at a press briefing at Aryaduta Hotel Karawaci, Banten, on Thursday night.
That regulation, he further stated, would allow fishermen to get LPG converter kits next year to lower their costs as LPG is cheaper than diesel fuel.
The first economic package was unveiled on Sep. 9 focusing on boosting industrial competitiveness through deregulation, curtailing red tape and enhancing law enforcement and business certainty.
Assuming that it takes effect three months after implementation, the regulation should start affecting the economy next year. The government should still continue to minimize constraints and seek to accelerate the policy's realization, Darmin said.
The World Bank's ease-of-doing-business index will be the main indicator for the government to measure the effectiveness of the packages. In the 2016 ease-of-doing-business survey, Indonesia ranked 109 out of 189 countries surveyed, which was up 11 places from its 2015 performance.
"The survey is about licensing, regulation and bureaucracy. So if you want to know the impact of the deregulation policies, you should look at the ease-of-doing-business index," he told journalists.
In the series of economic packages, the government tried to simplify assorted regulations and licensing processes to facilitate investment and support exports. Some burdening rates have been slashed and permit procedures simplified. (ags)(+)
