Jokowi: Accelerate Task Force on Business Licensing in the Region

Jakarta -President Joko Widodo instructed the district / city government to move quickly in forming the task force of acceleration of business permit.

Currently, the government records there are still about 241 districts / cities that have not formed a task force to accelerate business licensing from a total of 514 districts / cities in Indonesia. The mandate of forming the task force is stated in Presidential Regulation (Perpres) No. 91 of 2017.

“I ask the districts / cities that do not have a task force, which was presented by the Coordinating Minister immediately formed because we want to really not to lose. We are a big country with huge human resources, our exports are lost to Malaysia, the Philippines, Vietnam, “he said in Jakarta on Wednesday (28/3/2018).

The establishment of the task force admitted to be the key to the acceleration of business licensing in Indonesia and the authority lies with the Chairman of the Regional People’s Legislative Assembly, the mayor, and the regent in the relevant areas. Not only that, the formation of the task force was also believed to be a major force in overhauling the bureaucratic licensing system in Indonesia that was already intricate.

According to him, although the Ease of Doing Business (EoDB) has jumped to 72, in fact the process of business licensing in the field is still complicated. In this year, even Jokowi target EoDB rankings could sped into the top 40.

“Why do we need investment?” If there is capital inflows to the district or city, there is a cash flow so that the money circulation is higher and the road economy, “he said.

Meanwhile, Coordinating Minister for the Economy Darmin Nasution noted that the development of the current task force at the provincial level reached 97% or 33 of 34 provinces.

In contrast, at the municipal level, only 52% or 273 districts / cities have established a business license acceleration task force from 514 districts / cities across Indonesia.

In detail, the provincial government together with the district / city governments that have formed the task forces are West Sumatra, Riau, Jambi, South Sumatra, Bangka Belitung, Bengkulu, DI Yogyakarta, Central Sulawesi and Gorontalo.

“Because of the complexity of our licensing, it will no longer be packaged 1 through 16. It is no longer deregulation. What we want to do is reform the licensing, “he said.