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Indonesia improves rank for Doing Business

2016-11-11 10:22:14

Indonesia moves from 106 to 91 in the latest World Bank survey, but still has a long way to reach the top 50 or below.

In the World Bank’s Doing Business 2017 report, Indonesia features in the top 10 most improved countries.  Indonesia is ranked 91 out of 190 countries.  Indonesia’s rank improved for 7 out of 10 indicators, including starting a business, registering property, connecting to electricity and enforcing small contracts.

Significantly, the number of days to start a business improved from 46 to 22 days.  However, this still falls short of the government’s target to reduce starting a business to 10 days. Reports indicate the President is keen to see more rapid improvement, “this was a significant increase compared to other countries.  We rose the highest but the President is not satisfied. The President urged further improvement" said Chief Cabinet Secretary Pramono Agung.

Alongside other partners, AIPEG is supporting the Indonesian government identify practical improvements to make meaningful gains. For example, in addition to a pilot on business licensing, AIPEG is also working with the City of Jakarta on simplifying procedures for building permits. This includes a pilot IMB (building permits) online system that will expedite the process from the current 1-2 months to 3 days.

Indonesia has made enforcing contracts easier by introducing a dedicated procedure for small claims that allows for parties’ self-representation. AIPEG is working closely with the Australia Indonesia Partnership for Justice to socialise the need and advantages of small claims courts to various stakeholders across the Indonesian government.

AIPEG is also working together with Ministry of Trade and UN Pulse Lab to do a comprehensive study on dwell times at ports, concentrating on pre-clearance procedures. Further improvements to the National Single Window system to lower dwell times are aimed at increasing trade across borders.

Finally, AIPEG is supporting the Investment Coordinating Board conduct a public dialogue series among government agencies to spread reform momentum.  Also, to conduct monthly roundtables to engage the private sector in finding solutions.

 “We are all aware of what needs to be done.  It’s just a question of doing it.  So if there was ever a time, perhaps now is the time,” as said earlier this year by Tom Lembong, former Trade Minister and now Chair of the Investment Coordinating Board.

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