Long Road to Business Licence Reform: Evaluation on Implementation of Business Ease Improvement in the Region

Robert E. Jaweng • Ig. Sigit Murwito • Boedi Rheza • Sri Mulyati • Mohammed Iqbal Damanik 1 more
Report Komite Pemantauan Pelaksanaan Otonomi Daerah • August 2014 Indonesia


One year approaching completion of United Indonesia Cabinet work period, in November 2013 the Vice President Boediono announced Business Ease Policy Package. The Package consists of eight targeted areas comprising 17 Action Plans or business climate improvement steps. Such steps are aimed to resolve a number of obstacles that have been source of difficulties currently, whether in starting a business or in its development such as in processing transfer of property ownership, obtaining access to credit, etc. The Policy Package has been implemented at the national as well as regional levels. Records and assessment made on the performance (realization) show that part of the planned actions has been completed satisfactorily, while the other part has been failed. Certainly, taken into consideration business climate is a crucial issue in economic development, the new government under the leadership of President Joko Wiodo shall continue all the remaining action plans and bring a significant change. In order to assess and measure performance achievement, in particular at regional level on part of the action plans which are the domain of the region's function, the Regional Autonomy Watch (KPPOD) and Asian Development Bank (ADB) supported by Indonesia Investment Coordinating Board (BKPM) carry out an evaluation study on the implementation of the aforementioned Package. The three joined institutions conducting this study definitely have professional records and, moreover – in particular BKPM – has the authority and direct responsibility on the success of the plans. By adopting the framework used in the survey “Ease of Doing Business (EoDB)” by the International Finance Corporation (IFC)-World Bank, we have done this study at several selected regions, namely Medan City (North Sumatera), Surabaya City (East Java), Balikpapan City (East Kalimantan), and Makassar City (South Sulawesi), and have taken Jakarta as the benchmark. The result of assessment and measurement, also descriptive analysis on the abovementioned strategic issue are presented in this report. All the KPPOD researchers have done their best to perfectly assess and measure, and present in simple way technical and rather complicated matters in their findings so that the readers in general might understand easily. Certainly, we do hope that the report would be an input for the Government as well as the Local Government in policy formulation in their long way of improving business ease in Indonesia in the years to come. Finally, comments and criticism from the readers and the users of this study are highly appreciated. Such inputs are very important for us for improvement in preparation of similar studies which are planned to be conducted in 2015- 2016, with some enhancement in instruments and additional selected regions.




Komite Pemantauan Pelaksanaan Otonomi Daerah

Founded in 2001, KPPOD is a Jakarta based research organisation that examines Central and Regiona... see more


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