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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