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Jakarta Post

Govt hands tied as regional laws discourage business

  • Norman Harsono

    The Jakarta Post

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Jakarta   /   Thu, November 21, 2019   /  04:00 pm
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A worker inspects water pipes at a PVC factory in Bekasi, West Java. Many local government regulations contradict central government regulations, creating uncertainty for businesses.(JP/Dhoni Setiawan)

Many local business regulations contradict national laws and create legal uncertainty, but there is still no clear way to resolve the problem, partly due to a Constitutional Court ruling from two years ago. Jakarta-based think tank Regional Autonomy Watch (KPPOD) recently completed a study of 1,109 regional business regulations issued by six administrations and found that one-third of them (347 regulations) contradicted equivalent central government rulings.  "Such contradictions confuse business players. Which regulations should they follow? The ones they encounter every day on the field or those on the national level? By hierarchical right, they should follow those on the national level,” said KPPOD executive director Robert Na Endi Jaweng at a briefing in Jakarta on Wednesday. The regulations studied were those issued by the Bekasi, Bogor, Depok, Jakarta, Sido...