Local govts vow to simplify licencing

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)