Introductory Remarks of President Joko Widodo at the Limited Cabinet Meeting on the Ease of Doing Business, on 9 May 2016 at 15.00 p.m., at the Presidential Office, Jakarta

Unofficial English Translation

Assalamu’alaikum warrahmatullahi wabarakaatuh,

On 28 April, the Government has announced the 12^th Economic Policy Package that focuses on cutting red tape, simplifying procedures, as well as reducing time and cost in order to improve the ease of doing business, particularly for start-up entrepreneurs. Measures for improvement are needed because I want Indonesia to improve its position on the ease of doing business from currently 109^th to 40^th.

Additionally, the 12^th Economic Policy Package is a huge and important policy package that consists of 10 indicators for the ease of doing business. The 10 indicators show a reduction in procedures, from initially 94 procedures to 49 procedures. We see that nearly half of the procedures are reduced. However, in practice, we need to really comply with these procedures and ensure the implementation in the field.

Furthermore, the required permits are also reduced, from initially 9 permits to 6 permits. As formulated in this policy package, the time required to start a business has been cut from 1,566 days to 132 days. On resolving insolvency indicator, the calculation does not yet include the days and cost allocated to settle a case because there has not been any practice on such case since the new regulation was published.

I want the improvement measures in the 12^th Economic Policy Package to be practically ensured and show real changes; not only in written form but also in performance.

For instance, I see that the days and cost to start a limited liability company (PT) have not yet comply with the policy package. It is similar to the days and cost needed to earn a land certificate. Therefore, we need to ensure the implementation in the field.

Moreover, the improvement should also be ensured in the regional level. On last Saturday, I instructed the regents to follow up the points in the 12^th Economic Policy Package. We hope all regional leaders ensure that. I see that the Governor of Jakarta and the Mayor of Surabaya are among us today. I think we can follow up the points by ensuring the implementation in the field.

Although the survey will be carried out only in Jakarta and Surabaya, the Government, however, wants the policy package to be implemented nationally. Indeed, only two cities that will be checked and surveyed. However, the policy should be enforced nationally.

The improvement measures not only concern about the ease of doing business ranking, but we should also be able to achieve investment grade rating in order to expand Indonesia’s access to international financial market with certainly lower cost of fund and lower cost of international corporate bond market. It will also improve positive perception towards Indonesia that will lead to the increasing inflow of capital, money, and investment to Indonesia.

Therefore, I want improvement measures to be imposed from the institutional aspect, external economic aspect, as well as fiscal and monetary aspects, so we can really achieve investment grade rating.

That is my introductory remarks. Now I would like to invite Coordinating Minister (for the Economy) to take the floor. (Humas Setkab)(AW/YM/Naster)