JAKARTA (TheInsiderStories) – President Joko Widodo wants Indonesia’ ease of doing business (EoDB) ranking rise from 73 to 40 position in 2019. To Reach the target, he emphasized several things to do by his staff.
First, he asked the officials focus to improve 10 components with rank above 100, such as starting a business at 140, dealing with construction permit at 110, registering property at 106, and trading across the border that stagnates at 116.
“Also the two components that have been below 100 but actually rose again, from 44 to 48 this is getting credit. Then the problems related to resolving insolvency from 36 to 38. Already 36 how come up again, this is a matter related to bankruptcy,” he added .
Second, the President asked the coordinating minister for economic affairs and the investment coordinating board to make a monitoring and evaluation dashboard on a regular basis to ensure the improvements in some components that are still problematic.
“We have to fix the procedure and the time. Its must be simplified. For an example, time to start a business in our country still required 11 procedures and 13 days. If we compare it with China, the procedure is only four and only need time nine days. It means we have to be better than them,” said Widodo during the limited meeting on EoDB in the president office today.
Third, the President wants micro and small businesses get a number of facilities to do business in the country. He adds, “Maybe there is no need for a permit, but only registration.”
Last year, World Bank highlighted a number of factors that support the EoDB in the country was the process of starting a business, taxation and cross-border trading activities. Indonesia has become one of the lower middle income category countries that has the most labor regulations, especially regarding recruitment, said the report.
Jakarta is considered to facilitate the process of starting a business by introducing an online platform for business licenses and replacing print certificates with electronic certificates. The agency also highlighted the employment matters.
However, in terms of taxation is deemed easier, because of the online filling system and the introduction of a new system for taxpayers, which applies in Jakarta and Surabaya. In addition, business activities in the two cities have become much easier, after the government introduced an electronic case management system for law enforcement.
“Indonesia makes cross-border trade easier by increasing the online processing of customs declarations. It is applied in Jakarta and Surabaya,” the report stated.
The World Bank also saw that Indonesia has made the most improvements, five of ten sectors, to facilitate business. This number is the second largest globally, equivalent to Myanmar, and is behind China which makes improvements in eight sectors.
One indicator that is considered better in Indonesia is the ease of starting a business. Indonesia made improvements by introducing an Online Single Submission which facilitated the business licenses.
Meanwhile, on the electrification side, Indonesia has increased its electricity supply capacity well. The improvements of the electricity network maintenance system aims to increase the productivity of the business world.
The process of paying taxes is also considered to be getting better with the easier online reporting and tax payment. In terms of trading across borders, Indonesia has made this process easier by improving the online system of declaration of export goods.
Another sector that gets a positive value is law enforcement of agreements. It can be seen from the online case management system for judges.
by Linda Silaen, Email: firstname.lastname@example.org