Dilemma for entrepreneur

Dilemma for entrepreneur

The government has recently been intensifying efforts to
empower small-scale entrepreneurs. As a businessman I have been
longing to see an extension of capital aid for business
development and heartily welcome the government's efforts.

I once tried to obtain a business feasibility loan (KKU),
which has a low rate of interest and the collateral is the
feasibility of the business itself.

One of the requirements for obtaining the loan is a trade
business license (SIUP). To get this license, I needed a business
domicile certificate issued by the administration of the village
area where the business is domiciled.

I took a letter of certification from the management of the
place where I conduct my business and went to Kebun Bawang
village administration, Tanjung Priok sub-district, North
Jakarta, to obtain the paper I needed.

A village administration staffer typed the form I required for
the application. The fee was Rp 25,000, according to the form,
and I paid Rp 35,000 to allow for a tip of Rp 10,000 for the
staffer. To my surprise, however, I was told that the money was
not enough. He suggested that I visit the village administration
head.

The head official was out so I was assisted by the village
administration secretary. Before signing the paper, the secretary
(a woman) checked my file and counted the money attached to the
form. She informed me that the levy for a business domicile
certificate was Rp 75,000.

I explained to her that the form clearly stated a fee of only
Rp 25,000 was required. But she did not budge and argued that the
village administration had to pay the Special Region of the
Capital City of Jakarta Rp 35,000 for one set of forms.

In addition, they also needed funds for the city's cleanliness
and other programs because the city administration allocated only
a small budget.

Faced with the possibility of spending three times as much as
the official fee for the paper, I wondered how much I would have
to pay for the other (more important) papers? What would be the
markups on the official rates?

I decided to stop trying to get the paper. I hope decision
makers in Indonesia can improve this system which is intended to
empower the community.

Name and address

known to the editor