REPUBLIKA.CO.ID, JAKARTA - The central government currently is preparing a regulation to simplify the process of obtaining business permit for small and medium enterprises (SMEs).

"The new regulation will enable SMEs to open bank accounts and gain access to credit money to start their business. The local government will also offer incentives to those SMEs. Business permit for SMEs will be issued by the sub-district office, and SME owners will only need an identity card to register their business," Coordinating Minister for the Economy Chairul Tanjung stated on Wednesday.

The minister also emphasized that no charges would be levied on small business owners who applied for a business permit. After obtaining a business permit, the owners will no longer be required to pay retribution tax to the local government. Meanwhile, middle-level businesses will still have to pay tax to the government, about one percent of their total business assets.

Tanjung remarked that after the regulation was announced, the central government would coordinate with governors, mayors, and district heads from across Indonesia to socialize the implementation of the new regulation on the field.

The minister also assured that the government would simplify the process of obtaining business permits, which are being processed at the level of ministry of a higher government body. He cited the example of procuring a business permit for the plantation sector usually taking almost 2.5 years to process.

"In the future, the Investment Coordinating Board (BKPM) will coordinate with related ministries in order to simplify the business permit process," Tanjung added.

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