Kedutaan Besar Republik Indonesia
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Government of The Republic of Indonesia to Cut License Regulations to Boost Investment

The government will cut license regulations to boost investment, Chief Economic minister Hatta Rajasa said on Thursday 27/06/2013.

“We hope the simplification of procedures would attract interests and increase investment in the midst of current tight competition,” he said after a coordination meeting on the matter.

The meeting was attended by Energy and Mineral Resources Minister Jero Wacik, State Enterprises Minister Dahlan Iskan, Transportation Minister EE Mangindaan, Minister of National Development Planning Armida Alisjahbana, Housing Minister Djan Farids, Head of Central Statistics Agency (BPS) Suryamin and Deputy Finance Minister Mahendra Siregar.

Hatta said efforts to simplify the procedures would be done by cutting regulations that have no bases or are not based on higher laws such as for an example a director general`s regulation which is not required by law. If necessary a ministerial regulation could be revoked if it is not required by law, he added.

He said a lot of regulations at central and regional government levels are still hindering investment or causing long licensing process.

As an example Hatta said right now a total of 17 permits would be needed for setting up a natural gas or gasoline filling station and 25 permits would be needed for oil and gas exploration and another 25 permits for production.

The minister said the government would also set up a one-stop service to accelerate bureaucratic process with regard to simplifying licensing procedures.

“Later all sectors that have an authority to issue permits would be requested to transfer the authority to the one-stop service and I would set up an advisory team to monitor it,” he said.

Hatta said relaxation would also be done on incentives that have so far been given and all the policies would be put into an economic package to boost investment.

“We hoped with the policies doing business in Indonesia would be easier and the country`s competitiveness and perception would improve,” he said.

He said long licensing process must no longer be allowed to happen as it would only cause uncertainty and create a bad image among investors.

“So, we will determine maximum time for processing permits or how many days a permit will be issued. If the deadline is surpassed the permit will automatically be issued. This will force public officials to give good service,” he said.(*)

Source : antaranews.com