TEMPO Interactive, Surabaya: As many as 368 provincial regulations in the Province of East Java are in fact hampering business development, especially concerning investment in the region.
“This is BI's (Bank Indonesia) finding. After we studied the case, the regulations have the potential to deactivate business in East Java,” said Trisno Udjud, a member of the East Java Regional House of Representatives (DPRD), in Surabaya, Wednesday (08/01).
The uncooperative and unresponsive regulations include 34 regulations on provincial taxes and 73 regulations on provincial taxes.
Moreover, there are 244 regulations which are related to provincial retributions and 17 regulations about non-taxes and retributions.
In order to establish a conducive business climate as well as to boost new investors, Trisno said he hoped that the East Java government would revoke the regulations as soon as possible.
In addition, in line with Governmental Regulation No.79/2005, provincial government must be able to manage and control the regulations that regencies and municipalities had enacted, including revoking the regulations if they were proved to have burdened business investment targets.
“In fact, the regulations do not only hamper but also have the potential to enable the collection of levies that burden entrepreneurs,” said Trisno.