Widodo to Push Indonesia EODB Ranking To 40 Next Year

Photo by CMEA

JAKARTA (TheInsiderStories) – Indonesia’s Ease of Doing Business (EODB) for 2018 has jumped by 19 points to 72, however, President Joko Widodo said the ranking was not enough.

“I have told the Coordinating Minister for the Economy (Darmin Nasution) that I don’t want the ranking at only 72. The target is at least 50. Next year, we will push to reach the target of ranking 40,” President Joko Widodo said on Wednesday (Nov. 1).

Given the ambitious target, the President calls on his ministers to carry out total reform, starting from handling permit for small businesses to permit for major businesses or major projects.

“Therefore, all business players, small and large ones, can find it easy to get permits to set up or expand businesses,” the President said.

Chart by World Bank

Indonesia has made significant progress in its business climate as measured by the ‘Ease of Doing Business’ (EODB) global ranking for 2018, issued by World Bank on Wednesday (Nov. 1). The latest EODB ranking shows Indonesia is amongst the world’s top 10 reformers.

In this year’s ease of doing business global rankings, the country moved up to 72nd place from 91st position last year.

With this achievement, Indonesia’s position is still higher than other developing countries, including South Africa (82), India (100), Philippines (113), and Brazil (125). This year, Indonesia’s position passed China, which is ranked 78th but still below Malaysia in 24th.

According to the report, more than half of these reforms have been implemented in the last four years.  For a second consecutive year, Indonesia carried out seven reforms, the highest single-year count for the country.

Finance Minister Sri Mulyani Indrawati (Menkeu) explained that this “phenomenal improvement” of Indonesia’s ranking shows the government’s commitment to improve the business climate and encourage investment. She also said the role of the private sector is crucial to creating jobs, increasing state revenues, and promoting inclusive economic growth.

She added that this achievement is a worldwide recognition of the improvements being made by the Indonesian government. “Increased confidence of external parties, including investors and rating agencies, of the potential of the Indonesian economy becomes important capital for the government to create sustainable economic growth and improve people’s welfare,” she said.

Chart Source : World Bank

Furthermore, Coordinating Minister of Economics Darmin Nasution asserted that President Joko Widodo continues to encourage coordination among government agencies to improve regulations and facilitate efforts.

“The government will continue to promote the development of our business climate through regulatory improvements at both the central and regional levels. The government will also continue to create productive fiscal policies, while maintaining health and sustainability, as reflected in the current and newly-approved 2018 budget,” he said.

The government has issued Presidential Regulation Number 91 Year 2017 on Acceleration of Doing Business on 26 September 2017 as part of the overall reform of doing business in Indonesia. The decree has helped improve Indonesia’s business climate.

The National Investment Coordinating Board (BKPM), which has been in the forefront of the reform, issued a statement saying that the government will continue to its efforts to improve indicators such as Starting a Business, Dealing with Construction Permit, Registering Property, Paying Taxes, Trading Across Borders and Enforcing Contract. (*)

Roffie Kurniawan, email roffien@theinsiderstories.com