RI`s rank in IFC`s `easiness of doing business` index improves

Jakarta (Antara News) - Indonesia's ranking in the International Finance Corporation's (IFC) 'easiness of doing business' index has improved, reflecting the government's progress in enacting regulatory reforms, the World Bank's investment arm said Wednesday.

In the IFC's Doing Business 2008 report, Indonesia ranked 123 out of 178 countries surveyed.

Last year, it placed 135 out of 175 countries surveyed and in 2005, the country ranked 115 out of 155 countries polled.

"Indonesia, the runner-up reformer in the region, simplified the process for getting construction permits, cutting delays from 49 days to 21," IFC was quoted by Thomson Financial as saying in a statement.

"It also expanded the coverage of loans by the public credit registry and strengthened investor protection by increasing disclosure requirements," it said.

The rankings are based on 10 indicators of business regulation that track the time and cost to meet government requirements in business start-up, operation, trade, taxation, and closure. They do not reflect such areas as macroeconomic policy, quality of infrastructure, currency volatility, investor perceptions, or crime rates.

IFC said the top reformer in the region and among the top 10 in the world is China after the country introduced far-reaching protection of private property rights and a new bankruptcy law.

Singapore, for the second year running, topped the aggregate rankings of 178 economies on the ease of doing business.

The number of days to start a business in Indonesia has extended to 105 days from 97 days, but still better than in 2005, when it took 151 days, according to the report.

The number of procedures to go through before obtaining a business license remained at 19, IFC said. However, the number of days to register property can now be done in only seven days, compared to 42 days previously.

Elsewhere, it takes just two days to start a business in Australia with two procedures, 35 days in China with 13 procedures, five days in Singapore with five procedures, 24 days in Malaysia with nine procedures and 50 days in Vietnam with 11 procedures. (*)
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