JAKARTA (TheInsiderStories) - Minister of Justice and Human Rights Yasonna Laoly said the government is planning to issue a Presidential Decree (PP) to reinforce Law Number 40 Year 2007 regarding Limited Liability Company for Micro, Small and Medium Enterprises (MSMEs). This change is expected to increase Indonesia’s business indicator in doing business.
The government will launch guidelines and changes to various regulations related to the ease of doing business or Ease of Doing Business (EODB) this March.
In the new regulation, the future minimum capital requirement for establishing a limited liability company will be removed. In the current law, the establishment of a limited liability entity (PT) requires initial capital of a minimum of Rp 50 million.
Yasonna said the article 32 paragraph 1 of Law No. 40, stated that the establishment of a PT required minimum capital of Rp50 million (US$3.79 million). Furthermore, in paragraph 2, the law also regulates certain business activities can determine the amount of the minimum limit of the capital change. But, in verse three, the basic capital changes in the first verse can be changed through issuing a Government Regulation.
However, Coordinating Minister for Economic Affairs Nasution said the relaxation of the minimum capital applies only to small and medium enterprises. He said the regulation-is also aimed to increase the business indicator to start a business in the country. Darmin is optimistic that the new regulation could be implement in second quarter of 2016.
Darmin added, the government will launch guidelines and changes to various regulations related to the EODB this month. As is known, every year the World Bank (WB) issues the Ease of Doing Business Indicators in 189 countries through a survey.
The survey is conducted every month from March to June. The result of the survey in 2015 has been published earlier in the year 2016- puts Indonesia at position 109. Indonesia’s neighbors rank higher, Malaysia is ranked 18th, Thailand 48th and Vietnam ranked 90.
There are 10 indicators assessed in the World Bank survey, namely: starting a business, dealing with construction permits, registering property, paying taxes, getting credit, enforcing contracts, getting electricity, trading across borders, resolving insolvency and protecting minority investors.
The indicator of dealing with construction permits, a Regulation of the Minister of Trade (Regulation) Number 90 of 2014 regarding the arrangement and development of the warehouse has been revised. After the revision, the permit for starting a warehouse (TDG) is shortened to one day. Warehouse with an area less than 98 square meters used by SMEs are also no longer require TDG permit, except for basic goods.
Still in the same indicators, the Public Works and Public Housing Ministry will also revise the regulation number 24 of 2007 on Technical Guidelines for Building Permit (IMB). In the new revision, the process to get IMB permit becomes much simpler to a maximum of seven days and costs discounted at 50 percent.
Meanwhile, on getting electricity indicator, PT Perusahaan Listrik Negara made many improvements, such as the number of procedures and duration of the electrical installation. The procedure was shortened from 40 days to 22 days. As for the number of procedures shortened from five to four stages.
In addition to these changes, the government also needs to inform the public of the changes. In indicator of starting a business and paying taxes, the actual current dues payment or health insurance premiums (BPJS) can be done online. But this needs to be disseminated more widely so that respondents can complete the survey properly.
“We will disseminate all regulations related to this in the near future together with BKPM, ministries and government institutions,” Nasution said before closing the coordination meetings. (*)