Doing Business in Indonesia Can be Easy
Friday, 09 November, 2007 | 15:22 WIB

Tempo Interactive, Jakarta: The rank of ease in business in Indonesia has the chance to go up 41 places from the 123rd to 82nd in 2008. On the condition that the government repairs the mechanism for starting a business, ownership registration and obtaining credit.

A team member of Doing Business 2008 of the World Bank and International Finance Corporation, Sylvia Solf, said that to raise the rank, first Indonesia must eliminate the requirement of minimum capital to found a business.

This is to advance the emerging new industries. Second, making the notary's involvement an optional clause.

Third, consolidating the government's approval through a one stop system.

“The restoration may shorten the process to start a business in Indonesia,” said Sylvia in Jakarta, Wednesday (6/11).

Now, she said, Indonesia is in the position of the 168th out of 178 countries in terms of ease to start a business.

The time investors need to open a new business in this country is 105 days.

This is despite the average time needed to open a business in the Asia-Pacific region is 46.8 days. For developed countries, it only takes 14.9 days.

“This time will affect the cost of founding a business, so it needs to be simplified,” she said.

If the government can repair it, she said, there is an opportunity for Indonesia to be in the 61st position.
Sylvia said the government also needs to repair business credit information for the public. The aim is to simplify the search for bank credit.

Another member of the Doing Business 2008 team, Justin Yap, said that Indonesia's rank in terms of business ease is generally still far from that of Singapore, Thailand, Malaysia even Vietnam.

Out of 30 top countries in the ease of business aspect, Singapore is in the first position and Thailand also Malaysia are at the 15th and 24th respectively.

Eko Nopiansyah
_________________________ Indonesian Business and Investment News Aggregator