Economist Supports President's Plan to Form Investment Deregulation Task Force

Professor Didik believes that the formation of an Investment Deregulation Task Force is a positive step towards resolving structural issues within Indonesia’s economic governance. Weak institutional issues, particularly regarding bureaucracy that hinders many business actors, have been criticised by President Prabowo himself, according to Prof. Didik’s statement to the RMOL Political and Economic News Agency on Monday, 18 May 2026.

He noted that the investment licensing process in Indonesia remains excessively long and complicated. Investors may have to wait between one to two years to obtain business permits, whereas similar processes in other countries can be completed in approximately two weeks. “Complicated regulations actually create loopholes for unhealthy practices within the bureaucracy,” he remarked.

Consequently, the founder of the Institute for Development of Economics and Finance (INDEF) is urging President Prabowo to promptly realise the formation of the Investment Deregulation Task Force. He also highlighted that Indonesia’s foreign investment achievements still lag behind several neighbouring countries. Based on the data presented, foreign investment in Indonesia stands at 1.8 per cent, while Vietnam has reached 4.2 per cent, Malaysia 3.7 per cent, and Singapore 27.8 per cent.

“Therefore, the President plans to form a special deregulation task force to trim regulations and permits deemed to hinder investment and business activities in Indonesia,” he said. Prof. Didik added that the idea of forming a deregulation task force is a logical step, noting that East Asian nations that have successfully industrialised also employ a “war room” model for bureaucratic reform, controlled directly by the highest political leader.