Many Investors Complain About Permitting, Prabowo Wants to Form Deregulation Task Force
President Prabowo Subianto has admitted receiving numerous complaints from foreign investors regarding the excessively prolonged permitting processes in Indonesia.
He conveyed this during the handover of Rp10.2 billion in administrative forest fines collected by the PKH Task Force at the Attorney General’s Office on Wednesday (13/5).
Prabowo stated that he has tasked State Secretary Prasetyo Hadi with gathering experts to form a task force on permitting deregulation.
“Many investors, including those from abroad, complain that permitting in Indonesia takes far too long, and sometimes the requirements are utterly unreasonable,” he said.
He urged that permitting processes should no longer be made difficult. According to him, entrepreneurs intending to invest in Indonesia must be supported to enhance the people’s economy.
“Simplify it, don’t make it difficult. Entrepreneurs must be helped and supported. We discipline the naughty ones, but those who are good and truly want to work must be assisted,” he explained.
On the other hand, Prabowo admitted to still encountering bureaucrats who deliberately complicate permitting processes to find opportunities for demanding money.
He expressed astonishment because, although the government has simplified permitting, ministries and agencies re-complicate it through ministerial regulations and technical rules.
“The tendency in regulations is the initiative of bureaucrats—frankly speaking—to seek opportunities. Some will later demand kickbacks or money to expedite the issuance of permits,” he stated.
Prabowo even admitted receiving complaints from business groups wanting to work and invest in Indonesia but facing permitting obstacles.
He noted that permits often only emerge after one to two years from the submission date. Meanwhile, Prabowo said, in other countries, permitting can be completed in just two weeks.
“Entrepreneurs also complain; they want to work and invest, but sometimes they wait for permits for one year, two years,” he said.
“Whereas in other countries, it’s two weeks. We must refer to our neighbours. If they can issue permits in two weeks, why do we take two years?” he added.