Retailers urge government to simplify licensing

JAKARTA (JP): The Indonesian Retailers Association called on the government yesterday to simplify licensing procedures for retailers.

Association secretary general Suryadharma Ali said the government must revamp its long and complicated retail licensing procedures.

Speaking at a hearing with House Commission VI, Suryadharma said retail licensing should be handled by one government agency through a one-stop service.

He said retailers had to get more than a dozen licenses before they could operate, including so-called principle licenses from governors and operational licenses from governors and the Ministry of Industry and Trade.

Retailers should obtain additional licenses for specific products from other government agencies such as a butchers license from the husbandry supervisory office; a fish shop license from the fishery supervisory office; and an alcohol license from the customs and excise office, provincial tax office, police and health office.

The licenses cost retailers much time and money, he said adding that the association was investigating the costs.

"The licensing procedure is different from one area to another," Suryadharma said.

The association asked the government to simplify licensing procedures into a one-stop service, which could be stipulated in the trade bill which is being drafted by the government.

The association regretted that many wholesalers were acting as retailers, and hoped the future law would forbid it, Suryadharma said.

The association hoped the future trade law would more clearly regulate franchising.

Existing investment regulations forbid foreign franchisers buying into their local partners' businesses but allow them to give technical assistance to their franchisees.

The association considered the regulations were too weak to prevent franchisers from investing in their franchisees because the regulations did not clearly identify an agency to supervise retailers, Suryadharma said. (jsk)