REPUBLIKA.CO.ID, JAKARTA – The minister of Interior, Gamawan Fauzi, admitted some obstacles still hampered the investment procedure in Indonesia. He pointed license procedure in some area was still time consuming and expanding to more than 17 days. Yet, he also praises Special Region of Yogyakarta which shows good performance in investment facilitation.
“Some ministries decided that the procedure of investment license should be no more than 17 days,” Fauzi cited the decision made by Ministry of Interior, Ministry of Trade, Ministry of Law Enforcement and Human Rights, and Indonesia Investment Coordinating Board (BKPM). “It aims at easing investment procedure.”
Some provinces, Fauzi admits, are still left behind. “In some area, we found the investment license procedure cloud take 60 days,” he said, pointed that some local governments were still inconsistent to apply single door policy. Yet, Ministry of Interior still applies wait and see policy. “Regions that show good performance will be awarded,” Fauzi added, refered to investment facilitation.
IFC: Yogyakarta is the easiest
International Finance Corporation (IFC) reports its latest findings in Doing Business in Indonesia 2012. The documents show some improvements in the 14 cities previously measured, namely Balikpapan, Banda Aceh, Bandung, Denpasar, Jakarta, Makassar, Manado, Palangka Raya, Palembang, Pekanbaru, Semarang, Surabaya, Surakarta, and Yogyakarta. IFC expands the analysis to 6 new cities across the nation: Batam, Gorontalo, Jambi, Mataram, Medan, and Pontianak.
“Compared to income per capita, the cost to start a new business is still high. The process of property registration (3.1 percent of the property cost) is the costliest among APEC countries,” Director of Global Indicators and Analysis Department, World Bank Group, Augusto Lopez-Claros, said on Tuesday.
The average time to start a business and deal with construction permits have been reduced by more than 25 percent since 2010. Starting a business is easiest in Yogyakarta, where it takes 29 days and costs 18.5 percent of income per capita to comply with the eight requirements. It is more difficult in Manado, where it requires 11 procedures that take 34 days and cost 30.8 percent.
No single city outperforms the others in all areas. It is easiest to start a business in Yogyakarta, deal with construction permits in Balikpapan, and register property in Bandung and Jakarta. It is most difficult to start a business in Manado and register property in Batam. Dealing with construction permits is most burdensome in Jakarta, while no building permits for commercial warehouses have been issued in Gorontalo since 2008.
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