Local govts vow to simplify licencing

The Jakarta Post, Jakarta

Regional administrations have committed themselves to attracting investment by improving efficiency in administrative procedures and simplifying regulations in Indonesia.

"Investments are badly needed to improve labor conditions and capacity building at the regental/municipal level," said executive director of Indonesian Regencies Partnership Agency (BKKSI) Syarifuddin Lubis.

He signed an agreement with the general manager of the International Finance Corporation's program for Eastern Indonesia SME (small and medium enterprises) Assistance (IFC-Pensa) Chris Richards on Friday.

The one-year agreement was also signed by executive director of the Association of Indonesian Municipal Administrations (APEKSI) Sarimun Hadisaputra.

"The agreement is to promote sub-national deregulation in Indonesia and increase the capacity of local governments," said IFC-Pensa's business enabling environment program manager, Hans Shrader.

The program will improve efficiency at the local administration by helping reform administrative procedures impeding business development such as business registration and licensing services, by improving internal control systems and by establishing more effective customer feedback processes.

"We expect that through this cooperation we will get training in licensing, building legal certainty for investors and solving problems concerning transportation, drinking water supply and waste treatment," said Sarimun.

The former West Jakarta mayor said administrations at the municipal level were aiming to simplify administrative procedures as they had been accused of imposing burdensome bureaucratic procedures on business enterprises seeking licenses.

Citing an example, Sarimun named Tarakan municipal administration in East Kalimantan which had signed an agreement with Malaysia to accelerate the process for a business license to take only two hours. (004)