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Jakarta Post

Prabowo, Luhut vow to simplify bureaucracy

The President and the DEN head have both stressed the need to cut red tape for the benefit of businesses operating in the country as well as to lure new companies to set up shop.

Deni Ghifari (The Jakarta Post)
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Fri, March 21, 2025 Published on Mar. 20, 2025 Published on 2025-03-20T19:50:36+07:00

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Prabowo, Luhut vow to simplify bureaucracy A clerk helps people file their annual tax returns at the Taxation Directorate General in Kebayoran Baru, South Jakarta, in this file photo from March 2020. (JP/Dhoni Setiawan)

P

resident Prabowo Subianto and leaders of the National Economic Council (DEN) have vowed to simplify and streamline regulations so that businesses operating in Indonesia can become more competitive.

“We are constantly fighting to reduce bureaucracy, reduce convoluted regulations. We want our economy to be efficient, efficient, efficient,” Prabowo told reporters on Thursday in Batang, Central Java.

“With efficiency, we can be competitive, and we’ll become a prosperous nation faster,” he said during the briefing, after presiding over a designation ceremony of the Batang Integrated Industrial Zone (KIT) as the Batang Industropolis special economic zone (SEZ).

The government hopes that the industrial complex’s change in status to an SEZ will entice manufacturers from around the world to set up shop in the country.

Read also: Batang Industropolis now officially an SEZ, more to come, govt vows

Indonesia is notorious for its cumbersome bureaucracy and regulations, which many believe deter foreign direct investment in addition to creating an unhealthy industry ecosystem.

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A November report from the American Chamber of Commerce (AmCham) in Indonesia, developed in collaboration with the United States Chamber of Commerce, describes the country’s business procedures as “complex and cumbersome” and a top concern among American investors.

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