Senin 11 Jun 2012 18:09 WIB

IFC: Opening business in Indonesia still costly

Rep: A Syalaby Ichsan/Satya Festiani/ Red: Yeyen Rostiyani
Doing Business survey in 2010/11 states Indonesia sits on 129 on the Ease of Doing Business. The position is far behind other ASEAN countries, such as Singapore, Thailand, and Malaysia. (illustration)
Doing Business survey in 2010/11 states Indonesia sits on 129 on the Ease of Doing Business. The position is far behind other ASEAN countries, such as Singapore, Thailand, and Malaysia. (illustration)

REPUBLIKA.CO.ID, JAKARTA - Business license fees in Indonesia are still costly, as entrepreneur needs to pay 22 percent of per capita income for license, according to Operation Officer International Finance Corporation (IFC), Sandra Pranoto. "It is four times bigger than Thailand," Pranoto said on Monday.

Doing Business survey in 2010/11 states Indonesia sits on 129 on the Ease of Doing Business. The position is far behind other ASEAN countries, such as Singapore, Thailand, and Malaysia.

The fees for ownership swap for companies in Indonesia also could reach as high as 1.3 billion IDR or 11 percent from business value, while the average cost in APEC countries is only 3.7 percent.

Yet, Pranoto said the survey only used Jakarta as the representation of Indonesia because it had the highest growth of economy, while many other regions have reformed their bureaucracy, such as Yogyakarta.

Yogyakarta has issued the simple procedure on license. Many entrepreneurs are interested in investing in the city. Until 2012, government has issued 42,361 licenses ranging from building license to tourism license. "Yogyakarta may be comparable to New York," Pranoto said.

 

 

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