Indonesia Manages to Improve Seven Indicators, Darmin Says
Date 26 Oktober 2016
On Wednesday (26/10) morning, the World Bank announced the results of their surveys, studies, as well as analysis on ease of doing business in a number of countries.
As has been reported previously, Indonesias position in 2015 is better than 2014. In 2015, Indonesia was at rank 109 whereas in 2014 it was at rank 120. The condition in 2015 to 2016 is much better. The rank is going up from rank 109 to rank 91 out of 189 countries, Coordinating Minister for the Economy Darmin Nasution said to the journalists after a Limited Meeting, at the Presidential Office, Jakarta, on Wednesday (26/10) afternoon. The Minister said that there are 10 countries, including Indonesia, that become the top reformers. Indonesia manages to improve seven indicators out of ten.
It is seven out of ten, and the level of improvement is various. Some indicators, in fact, slightly decrease since we are recovering but other countries are recovering faster, Darmin said.
According to the Minister, there is one more indicator that improves. However, the World Bank said that change of regulations of that indicator is quite late so the real implementation could not be recorded.
The seven indicators are, first, starting a business. It includes integrating Trade Business License (SIUP) and Company Registration Certificates, removal of the requirements of minimum capital for Micro, Small, and Medium Enterprises (MSMEs) to establish a Limited Liability Company, online reservation for companys name, etc, Darmin said.
The second indicator is property registration. This sector is getting better since, in particular, the steps are much easier thanks to digital cadastral data as well as the cost.
The third indicator is faster access to electricity.
The fourth indicator is tax payments. The Minister said that the payment of taxes is much easier because now the system is online either for reporting and payment for Social Security Provider Body for Health (BPJS Kesehatan). It reduces the time needed a lot, Darmin said.
The fifth indicator is better access to get credit because the collateral system is much better.
Sixth, Darmin added, is the indicator for inter-border trade, export, and import. The condition is better since the services of customs are improving and the application for Export and Import Declarations is integrated with Indonesia national single window.
It is actually reflected in the dwelling time. We are not satisfied yet because it is still more than three days. The President wants the dwelling time only takes two days, Darmin further said.
The seventh indicator is contract enforcement. It is better as well as easier and it has procedures for simple lawsuit that allows all parties represented. It is the Supreme Court that works on the regulation, the Minister said.
Showing a Progress
The progress so far, according to the World Bank, is a reflection of the Indonesian Government to create a more competitive business climate by simplifying the process to start and run a business.
On that occasion, Darmin Nasution also explained that the current indicator is the 2017 indicator. In ASEAN, for example, Malaysia falls five places whereas Singapore falls one place. Thailand climbs three places; Bruneis rank is better; Vietnam climbs eight places, and Indonesia climbs eighteen places.
Indonesia has met the average standard of East Asia Pasific countries which the standard is 96, Darmin said.
Quoting the World Bank, Darmin stated that the time needed to start a business in Indonesia is now shorter. In 2004, it was 168 days while now it is 24.9 days. It shows that the Government makes a progress in ease of doing business within the last few years.