Cost to obtain licenses

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