Cost to obtain licenses

A company establishing a limited liability company needs to comply with the prevailing rules and regulations, among others the need to obtain approval from the Ministry of Justice and Human Rights. The ministry has established an integrated administration system called SISMINBAKUM with the objective of providing better service. However this system creates a dilemma, as the cost of establishing a PT has increased significantly, which becomes a deterrent to the business community especially for the small and medium scale businesses.

In our case for example we had to spend Rp 9 million. This amount was for the notary fees to obtain approval to become a legal entity and the cost of publishing our articles of association in the state gazette.

A significant proportion of the cost is to obtain approval from the ministry. We did not receive good service for the money spent which we consider to be very substantial.

The service has not improved from the time prior to SISMINBAKUM being set up. As a citizen who intends to become an entrepreneur and comply with the prevailing laws and regulations, we must also obtain various other permits and licenses at a significant cost. Such costs have an impact on our working capital. It would be impossible for us to improve our business if a significant amount of our capital is absorbed just in obtaining various permits and licenses.

The government must act fairly. It is only fair that small scale businesses should be able to obtain permits and licenses at a very minimal cost. We appeal to the ministry and other related institutions to provide small scale businesses with facilities in order for them to run their business legally at a very minimal cost. One way is to review SISMINBAKUM which creates a high cost economy.

INDRA K.

Jakarta