Indonesian Political, Business & Finance News

Administrative system confusing

Administrative system confusing

From Kompas

The application of an integrated administrative system at the Ministry of Justice and Human Rights for approval of the establishment of a limited liability company as a statutory body has only confused the public. Previously, the registration fee through a notary to certify the establishment of a limited liability company was only Rp 1 million. With the application of the new system, reportedly left to a private company, the fee has soared, therefore discouraging the public wishing to register the establishment of their companies.

At present many notaries charge over Rp 5 million for certification. Then you have to pay more to publish your articles of association in the state gazette, plus the notary's fee. In all, over Rp 10 million is needed to register a limited liability company.

In view of the above, the minister of justice and human rights should review the application of this administrative system or at least try to set uniform rates in this respect. It must be borne in mind that notaries get their income from their fees.

In the absence of uniform rates, the application of this administrative system only provides a golden opportunity for notaries and private companies licensed to operate under this system. Small-scale businessmen like me obviously cannot afford the high costs involved in obtaining documents on the establishment of our companies. In fact, sometimes we need these documents to meet the requirements set by banks.

SUMIATI

Tangerang, Banten

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