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Despite reforms, red tape still 'main problem' for regional projects
Bureaucratic hurdles, in particular the lack of regional regulations, still remained the greatest obstacle to investment projects despite the sweeping reforms made through the Job Creation Law, the government told regional leaders at Tuesday’s Rakornas.
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President Joko “Jokowi” Widodo arrives on Jan. 17, 2023 at the annual National Coordination Meeting (Rakornas) of Regional Heads and the Regional Leadership Coordination Forum (Forkopimda) in Sentul, West Java. (Cabinet Secretariat/Oji)
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ore than two years after embarking on far-reaching reforms, the government has confirmed that bureaucratic hurdles remain the number one obstacle to investment cited by businesses.
New licenses for spatial planning and building, both products of the Job Creation Law, had caused a backlog of investment projects, but the “snap remedy” was in the hands of regional leaders, President Joko “Jokowi” Widodo said on Tuesday at the annual National Coordination Meeting (Rakornas) of Regional Heads and the Regional Leadership Coordination Forum (Forkopimda) in Sentul, West Java.
Jokowi signed the Omnibus Law on Job Creation in November 2020 to streamline multiple investment regulations under a single law and to minimize the authority of regional entities to make investment decisions through the Investment Ministry’s Online-Single Submission (OSS) platform.
The central government has deemed the law necessary to overcome the issue of conflicting regulations, particularly when central rules clashed with regional ones.
“Get the unfinished [licenses] done as soon as possible, don’t bide your time,” Jokowi said on Tuesday.
Investment and exports were the keys to robust economic growth at a time of high inflation and interest rates around the world, the President cautioned repeatedly.
Read also: Local content requirement ‘a mistake’ for investment: AmCham
