President Jokowi Asks 12th Economic Policy Package to be Implemented on the Ground
President Joko Jokowi Widodo said that the Government on 28 April 2016 has announced the 12th Economic Policy Package focusing on cutting several permits, procedures, time, and cost in order to materialize an ease of doing business, particularly for start-up entrepreneurs.
Those improvements, the President said, are needed to improve Indonesias rank in ease of doing business from 109 to 40.
The 12th Economic Policy Package is a huge and important policy package that consists of 10 indicator levels in ease of doing business. From 10 indicators, the procedures will be cut from the previous 94 procedures to 49, President Jokowi said during a limited meeting on the Assessment of Standard and Ease of Doing Business, on Monday (9/5) afternoon, at the Presidential Office, Jakarta.
According to the President, considering how many procedures have been cut, the Government has already cut almost half of them. However, in the implementation, President Jokowi wants it to be carried out together, particularly in the implementation on the ground.
Regarding the permit, the President added, the Government has cut the permit from the previous 9 permits to 6. The time limit is also cut from 1,566 to 132 days.
However, the President admitted that the time limit has not calculated the number of days and court fees on resolving insolvency indicator yet because currently there is no practice of new regulations that being issued.
I ask the improvement measures embodied in the 12th Economic Policy Package to truly being implemented on the ground and in a concrete way. Do not let the implementation on the ground different from the one that we wanted, President Jokowi firmly said.
The President then took an example that there are no certain time limit and cost in the establishment of a Limited Liability (PT). The same condition also applies on land certificate.
It must be followed up on the ground. Meanwhile, the improvement must be implemented in the regions as well, the President asked.
President Jokowi, who was accompanied by Vice President Jusuf Kalla, explained that on Saturday (7/5) he instructed the regents to follow up the points in the 12th Economic Policy Package.
The President also hopes all parties could follow up what has been carried out on the ground.
Even though the survey will be conducted in Jakarta and Surabaya only, the Government wants the policy to be applied around the country. Though survey is only conducted in 2 cities, the policy takes effect nationally.
The improvement measures do not only emphasized on ranking in ease of doing business but also in investment grade rating, the President explained.
According to President Jokowi, Indonesia must achieve investment grade rating in order to expand our access to international financial market with the lower cost of fund.
We also could gain a lower cost in international cooperation market. It also improves positive perceptions towards Indonesia, that will boost capital inflows, inflows, and investment to enter the country, the President said.
Therefore, President Jokowi asked the Government to conduct some improvement measures in the aspects of institutional, external economy, fiscal, and monetary, so that we can achieve investment grade rating.
Also attending the limited meeting were Coordinating Minister for Political, Legal, and Security Affairs Luhut Pandjaitan, Coordinating Minister for the Economy Darmin Nasution, Coordinating Minister for Human Development and Culture Puan Maharani, Coordinating Minister for Maritime Affairs Rizal Ramli, Minister of State Secretary Pratikno, Cabinet Secretary Pramono Anung, Presidential Chief of Staff Teten Masduki, Minister of National Development Planning (PPN)/ the Head of National Development Planning Agency Sofyan Djalil, Minister of Finance Bambang Brodjonegoro, Minister of Trade Thomas Lembong, Minister of Agrarian and Spatial Planning/ National Land Agency Ferry M. Baldan, Minister of Industry Saleh Husin, Minister of Law and Human Rights Yasonna H. Laoly, Governor of Jakarta Basuki Tjahaja Purnama, Mayor of Surabaya Rismaharini, Managing Director of Social Security Provider Body for Manpower (BPJS), and Managing Director of State-owned Electricity Company PT. PLN. (DID/RAH/ES) (RAS/EP/YM/Naster)