Gov’t to Cut Business Permits Process to Boost FDI
Date 4 September 2019
In a bid to anticipate the possibility of recession in the next year, the Indonesian Government ha said it needs to boost Foreign Direct Investment (FDI) and domestic investment.
“It needs to be done because the situation of our balance of payments, especially the trade balance and current account, is already negative,” Coordinating Minister for the Economy Darmin Nasution said in Jakarta, Wednesday (4/9).
According to Darmin, with the inflow of foreign exchange and increased domestic production, the negative current account balance is expected to improve, especially since the FDI has more stable capital.
Furthermore, in the next one to two months, he added, the Government will focus on cutting various business permits again.
“We will remove the unimportant ones,” the Minister said, adding that the reduction is not limited to permits based on ministerial or presidential regulations, but also the laws.
“Of course we have to go through an omnibus law when it comes to laws,” Darmin said.
Citing President Joko Jokowi Widodo’s remarks at the Limited Cabinet Meeting, the Minister noted that Indonesia is currently not considered a good place for relocations of industries from China.
“All of this shows that there really is something that is not going well with us,” the Minister said.
Darmin went on to say that the complicated process of the business permits in Indonesia would normally be completed in a matter of days abroad, so the reduction of process is necessary to facilitate investment here. “We will eliminate it if it is not necessarily needed,” Darmin said. (MAY/AGG/ES)
Translated by: Galuh Wicaksono
Edited by: Muhammad Ersan Pamungkas