1. To remove red tape in business licensing, permit and other regulation related to business
This may include policy breakthrough such as: o Online processing for all business licensing both for national and regional level e.g.
SIUP, TDP, permit e.g. import quota, CoO, etc, and other regulation e.g. certi icate from Ministry of Law and Human Rights, etc, with zero fee, no price discrimination,
and speedy service o Expediting the realization of One Stop Shop for investment and business licensing
o Improving the institutional quality of governments agency especially in the ield of trade, industrial and SMEs in every region provinces, city, and municipality
2. To improve legal certainty, through
o Establishment of task force team to identify and provide recommendation to the government regarding harmonization of laws at all levels national, provincial, city,
and municipality level. This may require alignment, adjustment, or annulment of laws and regulation that are overlapping, or no longer relevant in present time
o Involvement of business player and other related stakeholders during each legislation process that relates with business activities
o Centralization of online database containing laws at both national and sub-national levels that is accessible by the public
o Enhancement of law enforcers professionalism in addition to technical knowledge in order for them to also understand economic standpoint when implementing their
duties. Their actionsdecisions should never impede favorable investment climate
3. To develop priority infrastructure projects in order to reduce logistics cost and improve connectivity both globally and domestically, through:
o Developing industrial cluster close to seashore based on SME cluster and is connected with global supply chain, particularly in Central Java, northern area of
East Java, Lampung, and Southern area Kalimantan
D.4. Policy Recommendation on S t r e n g t h e n i n g B u s i n e s s
Competitiveness
There is a golden opportunity for Indonesia both to boost the income of its people and
leading the global manufacturing market. However, Indonesia only has one time
window of opportunity, before demographic dividend will be stopped by 2030 and
Indonesias wage rises too fast that it b e c o m e s n o l o n g e r a t t ra c t ive fo r
manufacturing base. If Indonesia fails to optimize the opportunity, it would be there
for other competitors, like Vietnam, Bangladesh, and other less-developed
countries, to tap into this golden opportunity and using it to leapfrog Indonesia sometime
in the near future. Maintaining a competitive business climate
is a key to attract more FDI and stimulate higher export, which are critical components
for productivity growth necessary to boost countrys income. Business sector certainly
needs bold measures to increase Indonesias competitiveness in the international arena.
Several aspects that we highly propose to focus on are:
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STRENGTHENING BUSINESS COMPETITIVENESS FOR
A PROSPEROUS INDONESIA
o Replace goods transportation system from predominantly cartruck to train as the main mode of land transportation
o Establishing world-class export supporting infrastructure and manufacturing clusters, such as: ring road, road access to port, access to warehouse, international
port o Improving the ratio of electri ication to 100 and enhance further the quality of
electricity in Indonesia, especially at the regional level who experience blackout in a highly frequent basis e.g. Medan, etc.
4. To better the institutional aspects of infrastructure development, through several steps:
