One Door Licensing Still Corrupt

From: Tempo Interactive

TEMPO Interactive, Jakarta:The Transparency International Indonesia (TII) said that the Indonesian business licensing system is still prone to corruption. “The method used includes bribes, special connections ,” said TII researcher, Putut Ariyo Saputro, in his presentation in Jakarta yesterday.

TII data showed that the procedures investors must go through to start business in Indonesia are the most excessive in East Asia and Pacific. In 2011, entrepreneurs must go through nine steps, taking 47 days. In East Asia and Pacific, the average are 7.8 steps in 39 days. Meanwhile in 30 member countries of the the Organization for Economic Co-operation and Development (OECD), they only need 5.6 stages in 13.8 days.

Yet, since 2006, the Home Ministry has issued a regulation requiring a one door policy for business licenses. Since the Regulation No. 24/2006 has been enacted, there are 14 provinces and 365 regencies and cities that have started applying it.

Unfortunately, said Putut, there is no time and tariff standard as yet. In addition, there is no minimum service standard and external monitoring system. As a consequence, even though it is being hailed as a one door policy, “The potential for corruption is still great,” said Putut.

Dianing Sari

TEMPO/One Door Licensing Still Corrupt