REPUBLIKA.CO.ID, JAKARTA -- The government will relax its business nuisance license (Hinderordonantie/HO) regulation through its 12th tranche of economic policy packages to be announced shortly, a ministry official said.
"It is all about licensing how the HO and the environmental impact analysis (Amdal) will be combined. The 12th tranche of economic policy packages which will be announced shortly will cover this matter," Edy Putra Irawady, a deputy commercial and industry coordinator in the Chief Economic Minister's Office, said here on Monday.
He said the relaxation in the nuisance licensing regulation is part of the structural reforms now being launched by the government to facilitate businesses and bring more investment into Indonesia.
"We want to carry out structural reforms. If a permit is not needed, then these (HO and Amdal regulation) will be combined into one regulation. If it does not need a license, why should it need a permit? We mean to bring in this reform," Irawady said.
He said this permit will be either relaxed or eliminated altogether, based on existing standards and the process will be supervised and audited so that it is really effective in driving the economy.
"All such things will be reformed, including issues with the ministries of public works, trade, home affairs and regional governments. We will make doing business as easy as possible by making sure that permits are issued through a standardized system and under audited supervision," Irawady said.
Chief Economic Minister Darmin Nasution said earlier that the 12th installment of the government's economic policy packages will be announced after President Joko Widodo returns from his European tour. The tour had started on April 17 and concluded on April 23, 2016.
"Shortly after he returns from the presidential visit to Europe, we will issue the 12th economic policy package," Coordinating Minister for Economic Affairs Darmin Nasution had said on the sidelines of President Joko Widodo (Jokowi)'s visit to the United Kingdom on April 19.
During meetings with German Chancellor Angela Merkel and businessmen earlier, President Jokowi had said the Indonesian government was focusing on three issues -- expediting infrastructure development, conducting structural reforms or deregulation and improving human resources.
"As part of the structural reforms or deregulation, we will issue the 12th policy package shortly after returning from Europe," he had said.
On March 29, 2016, the government had announced a policy on smallholder business credits. Issued under the 11th economic policy package, the policy was aimed at encouraging micro, small and medium businesses which are export-oriented.
One of the factors underlying the issuance of the 11th policy package was that micro small and medium businesses have the creative potential to produce export goods in line with the government's policy to diversify export commodities.
However, efforts to export products made by micro, small and medium companies are still facing obstacles, particularly when it comes to human resources, marketing and international trade standards.
The policy package was aimed at providing stimulus to micro, small and medium businesses to increase exports and improve their competitiveness and quality.
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