Remarks of President of the Republic of Indonesia At the 2020 APEC CEO Dialogues (through Video Conference), Thursday, 19 November 2020 from the Bogor Presidential Palace, West Java Province
Date 19 November 2020
Excellencies APEC Leaders,
Chairperson of the APEC Business Council Advisory,
Ladies and gentlemen.
The year 2020 is a very crucial year for the world, and is very difficult year for the world. All countries have been challenged to solve an unprecedented problem, to go beyond our limits, re-examine the opportunities, and create breakthroughs and innovations that have never been thought of before.
I believe that chances and opportunities are still wide open. Indonesia makes use of the momentum of the crisis to carry out extraordinary structural reforms. We are improving existing regulations and reforming the existing bureaucracy so that we can move faster in this trying times, so we are more than ready to open the doors as wide as possible for businessmen and for investors through innovative ways.
Ladies and gentlemen,
A few weeks ago, Indonesia has enacted Omnibus Law on Job Creation. It was the first time a major regulatory simplification was carried out, simplifying 79 Laws into one Law. Our main goal is to create a better business and investment climate for all business sectors, including MSMEs and foreign investors. Overlapping regulations and complex procedures are streamlined, red tapes in licensing services are eliminated, and illegal levies that have hindered business and investment are eradicated while maintaining our commitment to protect the environment.
The Omnibus Law on Job Creation will bring a significant impact on the business and investment climate in Indonesia.
First, the business and investment licensing process becomes simpler and faster. The requirements for investment are simpler than before. Micro and small businesses no longer need licensing, just a simple registration process.
Second, illegal levies and corruption are eradicated by integrating the entire licensing process into an electronic licensing system through the OSS (Online Single Submission) system.
Third, business and investment activities are easier. The process to establish a limited liability company is easier without any minimum capital requirement. Procedures for patent and brand registration are also accelerated. Procurement of land and area for public interest and investment is much easier.
Fourth, investment in special economic zones, free trade areas, and free ports is easier and more attractive with various facilities and incentives. Business licensing services in those areas will be carried out within hours with fiscal facilities integrated into the OSS system.
Fifth, Indonesia also establishes a sovereign wealth fund body which will manage and place state funds and/or state assets directly or indirectly, and will collaborate with third parties.
Sixth, the Omnibus Law on Job Creation protects and enhances the role of workers in supporting investment in Indonesia, including by providing legal certainty in regulating minimum wages and severance pay.
Ladies and gentlemen,
The Government is currently finalizing the implementing regulations of the Omnibus Law. We will finalize the implementing regulations promptly, so that various regulatory reforms and de-bureaucratization can immediately benefit business sectors and become leverage for Indonesia’s economic growth in the future.
To that end, I invite CEOs and entrepreneurs in the Asia-Pacific region to make use of the opportunities of the newly-enacted Omnibus Law. I believe that the entrepreneurs as well as domestic and international business communities will obtain benefits from the positive impacts of the various potentials and incentives from the economic policies issued by Indonesia during this pandemic.
To conclude my remarks, let us rise up together and join hands to restore the health of the people and the regional economy, and immediately make leaps of progress for economic prosperity in the region.
I thank you.
Translated by Ridwan Ibadurrohman
Reviewed by Muhardi