Gov’t to Draft Regulation on Business Licensing in Regions

Minister of Home Affairs Tito Karnavian delivers his remarks at Public Dissemination of Government Regulation Bill on Business Licensing in the Regions. (Photo by: Ministry of Home Affairs PR).

Investment issue is one of the challenges that hamper Indonesia to escape middle income trap. However, investing in Indonesia is considered more complex compared to other countries. Therefore, to escape the trap the country needs to provide more job opportunities, according to Minister of Home Affairs Tito Karnavian.

“The enactment of Omnibus Law by the Government and the drafting of Government Regulation Bill aim to cut bureaucratic red tape and to provide more jobs,” Tito said in Jakarta, Thursday (12/11).

For the record, Ministry of Home Affairs is in charge of drafting Government Regulation on the Implementation of Business Licensing in the Regions to become a legal basis for governors, association leaders, and the regional legislative councils at provincial as well as regency/municipality levels in the future.

One of the requirements to become a large country through economic advancement, Tito continued, is a workforce.  Indonesia has a big demographic that can be an important asset for the country’s development and can also boost the economic growth.

“Economic growth is synonymous with production capability. The workforce as production machines, abundant natural resources as production materials, and large areas to accommodate production chains. Indonesia has it all,” he said.

Human capital, infrastructure development, and deregulation are three main issues that must get attention from the Government. Deregulation is deemed necessary to be carried out since there are many overlapping and inconsistent regulations in regional level that must be streamlined.

Tito also expressed hope that regional governments will create as many jobs as possible without damaging the environment and violating privacy rights. “We want all the people are productive, have jobs, no more unemployment so that the country’s economy can grow,” the Minister concluded. (Ministry of Home Affairs PR/UN)

Translated by: Galuh Wicaksono
Reviewed by: Mia Medyana