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Jakarta Post

Govt shortens process for building permits

Govt shortens process for building permits
Prima Wirayani
Jakarta   ●   Thu, February 25, 2016

The government is simplifying the process for people to obtain permits to erect buildings on plots of land, building use permits (HGB), as part of the effort to improve the ease of doing business in the country.

The process to get the permits, which used to take days or weeks, will be shortened with the signing of a ministerial regulation.

The agrarian and spatial planning ministerial regulation is to cut the time for the land documentation process from 30 days to only two days. The application can be made online.

In addition, the public can also check online for information about any plot of land, such as its status, price, location map and zoning.

This permit process only applies to a plot of land less than 5,000 square meters in size and if it is located in Jakarta, Bandung in West Java, Semarang in Central Java, Yogyakarta, or Surabaya in East Java.

Agrarian and Spatial Planning Minister Ferry Mursyidan Baldan said the permit processing would take no longer than two days.

'€œThe regulation even allows the head of a land office to serve as a special PPAT [land deed official] in case the process requires quick action,'€ he said after attending a coordination meeting at the Office of the Coordinating Economic Minister in Central Jakarta on Wednesday.

Ferry said the ministerial regulation was made to respond to a survey by the World Bank on the ease of doing business (EODB). That was why the cities covered by the regulation included Jakarta and Surabaya.

'€œWe put in Bandung, Semarang and Yogyakarta not only to answer the survey, but also to spread out the service'€™s benefits to the public,'€
he said.

The World Bank'€™s Doing Business 2016 report, which came out in January, ranks Indonesia in 109th position out of 189 countries. The Washington-based international financial institution carried out business conduct research in Jakarta and Surabaya between March and June 2015. It also did the same survey in 188 other countries.

Although having seen its rank improve from 114th place last year, Indonesia was outrun by its ASEAN counterparts, such as Malaysia, Thailand and Vietnam, which are at 18th, 49th and 90th place, respectively. Singapore, meanwhile, tops the list.

The survey shows that it takes 210 days to obtain a construction permit and 27 days to register property in Indonesia compared to 166 days and 57 days, respectively, in Vietnam.

Previously, President Joko '€œJokowi'€ Widodo, who was once in the furniture business, said he had assigned all the ministries and the Investment Coordinating Board (BKPM) to cut bureaucratic procedures in order to be able to improve the country'€™s ranking to 40th in the World Bank'€™s Doing Business 2017 ranking.

BKPM head Franky Sibarani said on a different occasion that the government had completed half of its 36 to-do-list items to achieve the ambitious target.

Ferry said results from improvement measures conducted by each ministry and institution would be gathered and discussed during a meeting at the Office of the Coordinating Economic Minister next week. He also stated that the services would gradually be available in all cities nationwide.

'€œWe are preparing the services for Mataram and Gorontalo,'€ he said, referring to the cities in West Nusa Tenggara and northern Sulawesi.

The Agrarian and Spatial Planning Ministry, in collaboration with the BKPM, previously provided a land checking service and issued land booking letters as parts of the BKPM'€™s three-hour licensing process for investors with investments of more than Rp 100 billion (US$7.46 million) and/or a plan to employ more than 1,000 workers.


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