BKPM Effort in Equalization of Investment Through Regional Investment Forum (RIF)

   

The World Bank has announced through their latest annual report that Indonesia is manage to become one of the 10th country in the world which reached the Easy of Doing Business (EoDB) enhancement. The report that titled “Doing Business 2017: Equal Opportunity” that launched in Washington DC (25/10), reveal that Indonesia rose 15th ratings from 106 to 91 in 2016. Rodrigo Chaves, the Head of World Bank Representatives for Indonesia, express that the 7 reformation steps from Indonesian government has improve the Indonesian ratings in EoDB. Chaves also said that the government effort, especially in the last three years, are managed to increase quality of business atmosphere for private sector. He is optimistic the local and global entrepreneur community will be more involved in investment business in Indonesia economy because of the easiness in licensing service process for doing business.

The reformation on business atmosphere has been done by the government include the easiness to have electricity, property registration and to begin business. As example, the process to have electricity for warehouse in Jakarta and Surabaya is easier and faster with the replenishment of electricity supply. In Surabaya, the electricity connection request has been simplified, which currently it’s processed about 58 days, compared to the last year that needs 79 days process.

The public service reformation in the last one year is also took with the application of online system in many field, like business field, property transfer registration process, and tax payment. Through functional online system, businessman only needs 25 days from the previous 48 days. The next reformation is associated with export-import procedure which is easier because of customs service and document registration improvements are under one roof. Overall, Indonesia is managed to increase the credit access by creating a modern warranty registration.

However, the report showed that Indonesia is still need to fix the reformation momentum like simplifying the procedure and reducing more the time and cost in contract implementation, business start and property registration. Meanwhile, The Coordinating Minister of Economic Affairs, Darmin Nasution, propose the formation of special board to improve the EoDB rating of Indonesia like other country. “Although it is not an institution like in other country, but it should have a dedicated person in charge. We must propose this to the President, at least it formed under the Coordinating Ministry of Economic Affairs office because the effort must continuously work to improve the ratings.” said Nasution (26/10).

Nasution also said that England and Georgia have a specific board which directly under each government likes President and Prime Minister. The special board proved can increase the rank of EoDB. Indonesia needs to notice at the rise of the EoDB ratings because it has positive impact to the business field comprehension in Indonesia, especially in investment business. Although there is increment of EoDB rank and considered as top performer country by the World Bank, the rank still has not in line with expectation. With the formation of the special board, Indonesia is hoped to have a better rank on the following years.

Source : BKPM