JAKARTA (TheInsiderStories) – Indonesian government through the agrarian spatial planning ministry aimed to reduce investment barriers in the property sector, one of which is the building permit, said the minister on Wednesday (09/18). Sofyan Djalil revealed, the policy aims to support the growth of property industry.
By reducing the barriers, he continued, its expecting to attract more investment come to the country. Going forward, the government will also begin to apply the omnibus law to slice length of investment licensing in the country.
Which means, if the rules are considered to be burdensome, then Indonesian president have ability to issue an executive order to override it to remove an obstacles in the investment process.
In the meeting with President Joko Widodo, chairman of the Indonesian Real Estate association Eric Samola said, he asked the government to immediately issue a tax policy to property sector. Because, so far, the provisions regarding taxation in the property industry such as progressive taxes and retained earnings are unclear.
He wanted the government is able to eliminate progressive taxes and retained earnings and only apply the final income tax. This is important so the developers can do business calmly without any changes in strategy in the company.
On the other hand, deputy at the coordinating minister for economic affairs Bambang Adi Winarso asserted, the business licensing reform is one of the national priority agenda. The Government of Indonesia is committed to ensure the easiness of business registration and licensing obligations in the national and regional levels to encourage economic growth in Indonesia.
For that, he said, the structural reform is needed, not only in simplifying the number and mechanism of licensing in Indonesia, but also accompanied by the harmonization of overlapping regulations.
According to Winarso, in many countries licensing is a function of risk, if the risk is greater then the rules must be stricter. During 2000 to 2015, he revealed, the government had issued 12,471 regulations.
However, the government has begun to simplify licensing and regulation over the past few years. In 2016, simplification of regulations resulted in the revocation of 324 regulations, revised 75 regulations, and reforms through the enactment of 19 regulations as mandated by the Economic Policy Package.
In 2017, simplification of regulations resulted in the revocation of 106 regulations, revised 91 regulations, and the merger of 237 regulations into 30 regulations. Then in 2018, the government simplifies licensing requirements and procedures through the operationalization of the Online Single Submission portal.
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