Investment Coordinating Board (BKPM) head Bahlil Lahadali says he is ready to resign if the country’s ease of doing business (EODB) rank did not reach the top 50 in the next four years.
“If I can’t meet that target, I’m ready to step down. That is my moral commitment,” he said at a press conference in Jakarta on Wednesday.
“If a public official can’t contribute positively to the country, they must resign. Don’t be a burden on the country,” he went on to say.
Indonesia ranked 73rd on the World Bank’s Doing Business 2020 report released in October last year. The country’s rank has stagnated since 2018, while neighbors Malaysia and Thailand fare better at 12th and 21st position, respectively.
The World Bank report highlights Indonesia’s rigid regulations on employment and minimum wages.
In terms of competitiveness to attract foreign investment, Indonesia slipped five positions to the 50th place of 141 countries on the World Economic Forum’s (WEF) Global Competitiveness Report 2019. Meanwhile, Malaysia and Thailand rank 27th and 40th, respectively.
Bahlil also said during the press briefing that he would simplify more than 20 investment requirements into just 17 to further ease both foreign and domestic investment.
“I am 90 percent to 100 percent sure that with the regulatory simplification, Indonesia’s doing business rank can go up,” he said.
Attracting more investment has become a priority of President Joko “Jokowi” Widodo’s second-term administration to boost the country’s economic growth.
Jokowi recently streamlined all business licensing processes toward the BKPM and granted the agency the authority to review policies seen as hampering investment. At the same time, the government is formulating an omnibus bill on job creation to cut red tape and attract more investment to the country.