The government is set to streamline regulations and provide improved services for businesses in a bid to improve its position in the World Bank’s ease of doing business (EODB) ranking
he government is set to streamline regulations and provide improved services for businesses in a bid to improve its position in the World Bank’s ease of doing business (EODB) ranking.
The Law and Human Rights Ministry’s director general for legal administration, Freddy Harris, said the government launched a trial of online services to speed up procedures in creating company deeds, which was a starting point in setting up a business.
“Going forward, [investors] could use the online application, which also functions as a payment system. For example, if investors want to create a company deed, a payment could be made using the application,” he said following a coordination meeting in Jakarta on Monday.
Starting a business is one of 11 indicators outlined by the World Bank in measuring the EODB ranking of a country. The indicators correspond to the business life-cycle, which include starting a company, dealing with construction permits, getting electricity, getting credit and paying taxes to resolve insolvency.
Freddy also said in order to provide more efficient services for new businesses, the Law and Human Rights Ministry would issue company deeds electronically, while working with the Civil Registration Agency (Dukcapil) to use data available in e-ID cards.
“If investors want to create a company deed, they could come to the notary and bring their e-ID for scanning. This procedure was designed to avoid [administrative] errors,” Freddy said.
Prior to the new procedures, setting up a new business could take around seven days, Freddy said, adding it would take only three hours with the new procedures in effect.
He said the trial arrangement was made as the ministerial decree had already been issued, with full implementation expected to begin on Feb. 1.
In addition to streamlining the process, Freddy said the ministry was also currently working to integrate other permits that were under the authority of the ministry.
“For example, if businesspeople want to create company deeds, we would ask them, ‘Do you want to also register your product brand or register your [web] domain name?’” said Freddy.
Separately, Investment Coordinating Board (BKPM) head Thomas Lembong said the government was working to further revise prevailing rules to improve the process of doing business in the country.
Thomas said the government would revise between 18 and 20 regulations of various levels, such as gubernatorial decrees, finance ministerial decrees and Supreme Court regulations.
“Revision was being carried out to further ease several components [in EODB] such as resolving disputes and securing building permits,” said Thomas.
On finance ministerial decrees, Thomas said the government was looking to revise those on regulating exports and imports as well as land and building registration, which is related to property transfer fees.
He also called on directors general, particularly in the Finance Ministry, to provide further details on its ministerial decrees.
“There were several financial ministerial decrees that have already [been issued] but there has yet to be a follow up on regulations at the director general level. We encourage the directors general to follow up on prevailing regulations by issuing the director general decree,” he said.
Indonesia jumped 19 places from the 91st position to 72nd position in the World Bank’s EODB ranking in 2017. However, it still lagged behind its regional peers. Thailand and Malaysia, for example, ranked 26th and 24th, respectively.
Thomas said he hoped Indonesia would again improve its EODB ranking to within the 60s in 2018.
President Joko “Jokowi” Widodo previously set an ambitious target for Indonesia to rank in the top 40 by 2019.
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