Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Govt hands tied as regional laws discourage business

  • Norman Harsono

    The Jakarta Post

Jakarta   /   Thu, November 21, 2019   /  04:00 pm
The Jakarta Post Image
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...