Gov’t Introduces New Regulation to Boost Investment, Economic Growth
Date 6 Desember 2019
President Joko “Jokowi” Widodo on 22 November 2019 signed Presidential Instruction Number 7 of 2019 on Measures to Accelerate Improvement of Ease of Doing Business index.
The Instruction aims to improve the country’s Ease of Doing Business index in a bid to boost investment, stimulate economic growth, and provide employment.
The Instruction is addressed to Cabinet Ministers of the Republic of Indonesia, Cabinet Secretary, Chief of the Indonesian National Police, Attorney General of the Republic of Indonesia, and Heads of Non-Ministerial Government Agencies.
In this Presidential Instruction, the President instructs Head of the Investment Coordinating Board (BKPM) to:
- coordinate necessary corrective measures to improve the country’s Ease of Doing Business ranking;
- evaluate the implementation of business licensing and investment facilities conducted by Ministries/Agencies;
- make recommendations based on evaluation results to the Minister/Head of Agency; and
- facilitate and provide services to business players in business licensing process as well as provide investment facilities.
The President also instructs Minister/Head of Agency to take the necessary measures in accordance with their respective duties, functions and authorities to:
- identify and review laws and regulations which hamper the Ease of Doing Business and investment in each Ministry/Agency;
- reduce the number of procedures and requirements and simplify them, and accelerate the issuance of business licenses through changes or revocation of laws and regulations on business licenses in each Ministry/Agency;
- follow up recommendations submitted by Head of the Investment Coordinating Board;
- delegate authority for business licensing and investment facilities to Head of the Investment Coordinating Board; and
- appoint Secretary General/Principal Secretary as the liaison officer and person in charge of following up the recommendations of Head of the Investment Coordinating Board and matters related to the management of business permits and the granting of investment facilities.
In implementing the aforementioned instructions, the Minister/Head of Agency shall coordinate with relevant Ministries/Agencies and involve the participation of associations/business actors, as well as other parties deemed necessary.
The Instruction also instructs Head of the Investment Coordinating Board to: 1. prepare Norms, Standards, Procedures and Criteria (NSPK) for business licensing and investment facilities delegated by the Minister/Head of Agency; and 2. report the implementation of the aforementioned tasks to the President every 3 (three) months or at any time if necessary.
“Cabinet Secretary oversees the implementation of the Presidential Instruction and reports to the President,” the FIFTH dictum of the Presidential Instruction reads.
The President instructs the aforementioned officials to implement the Presidential Instruction in a responsible manner.
“The Presidential Instruction shall apply as of the date of its enactment,” the Presidential Instruction reads. The Instruction is enacted in Jakarta on 22 November, 2019. (Pusdatin/ES)
Translated by: Ridwan Ibadurrohman
Reviewed by: Ersan Pamungkas