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.
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