REPUBLIKA.CO.ID, JAKARTA -- The Indonesian government is preparing guidelines and revising various regulations that will make it easier to do business, as part of efforts to provide access to investors who want to start a business in Indonesia.
"These guidelines should be formulated soon and will be tabled in a cabinet meeting," Coordinating Minister for Economic Affairs, Darmin Nasution, said after a coordination meeting here on Thursday.
According to the latest report of the World Bank, Indonesia was ranked 109th out of 189 countries in 2016. Meanwhile, Singapore was ranked first, followed by Malaysia at the 18th spot, Thailand at 48th and Vietnam at 90th.
There are 10 indicators, which are being assessed, including the ease of starting a business, building permits, registration of ownership, payment of taxes, access to credit and a cooperation agreement.
Other indicators are the ease in getting an electricity connection, cross-border trade, problem solving for bankruptcy and protection for Micro, Small and Medium Enterprises (SMEs).
One of the rules that have been fixed is the basic capital for the establishment of a Limited Liability Company (PT).
The government will then revise the trade regulation No.90 Year 2014 concerning the organization and development of warehouses. As a result, the publication of warehouse registration certificate can be shortened to one day.
However, the provision of a warehouse with an area of less than 98 square meters will not require the warehouse registration certificate.
The Ministry of Public Works and Public Housing (PUPR) will also revise the ministerial regulation No.24 Year 2007 on Technical Guidelines for Building Permits (IMB). The IMB will proceed for seven days and the costs will be cut by half.
"We will disseminate all regulations in relation to the ease of doing business. The dissemination will be conducted by ministries and other institutions," the minister said.
Meanwhile, state-owned electricity company PLN will improve procedures for granting an electricity connection. The procedures will be divided into four stages. Getting a new connection will takes 22 days.
"We will cut all costs and the duration of the process. We will not conduct a customers survey. We can take a look at the existing online data," President Director of PT PLN Sofyan Basir said.
Moreover, the government expressed readiness for socializing the regulations. As a result, the respondents can know the rules and fill out the questionnaire correctly, one of which is related to the payment of insurance premiums of the Social Security Management Agency (BPJS. The payment can be made through an online system.
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