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Business Reforms in Indonesia

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB2017:

Starting a Business: Indonesia made starting a business easier by creating a single form to apply for the company registration certificate and trading license. This reform applies to Jakarta. Indonesia also made starting a business easier by abolishing the minimum capital requirement for small and medium-size enterprises and by encouraging the use of an online system to reserve company names. This reform applies to both Jakarta and Surabaya.

Getting Electricity: Indonesia made the process for getting an electricity connection faster by reducing the time for contractors to perform external work thanks to an increase in the stock of electrical material supplied by the utility. In Surabaya, getting electricity was also made easier after the utility streamlined the process for new connection requests.

Registering Property: Indonesia made it easier to register property by digitizing its cadastral records and setting up a geographic information system.

Getting Credit: Indonesia strengthened access to credit by establishing a modern collateral registry.

Paying Taxes: Indonesia made paying taxes easier by introducing an online system for filing and paying health contributions. Indonesia also made paying taxes more costly by levying a new pension contribution at a rate of 2% paid by employers. These reforms apply to both Jakarta and Surabaya.

Trading across Borders: Indonesia made exporting and importing easier by improving the customs services and document submission functions of the Indonesia National Single Window.

Enforcing Contracts: Indonesia made enforcing contracts easier by introducing a dedicated procedure for small claims that allows for parties’ self-representation.This reform applies to both Jakarta and Surabaya.

DB2016:

Starting a Business: Indonesia made starting a business in Jakarta easier by reducing the time needed to register with the Ministry of Manpower.

Getting Credit: Indonesia improved access to credit by enabling searches of the collateral registry by the debtor’s name. This reform applies to both Jakarta and Surabaya.

Paying Taxes: Indonesia made paying taxes easier and less costly for companies by introducing an online system for paying social security contributions and by reducing both the rate paid by employers and the ceiling for the contributions. This reform applies to both Jakarta and Surabaya.

DB2015:

Starting a Business: Indonesia made starting a business easier by allowing the Ministry of Law and Human Rights to electronically issue the approval letter for the deed of establishment. This reform applies to both Jakarta and Surabaya.

Getting Electricity: In Indonesia the electricity company in Jakarta made getting electricity easier by eliminating the need for electrical contractors to obtain multiple certificates guaranteeing the safety of internal installations—though. The utility in Jakarta and Surabaya also increased the cost by introducing a security deposit for new connections.

Paying Taxes: Indonesia made paying taxes less costly for companies by reducing employers’ health insurance contribution rate. This reform applies to both Jakarta and Surabaya.

Trading across Borders: In Indonesia trading across borders became more difficult because of insufficient infrastructure at the Tanjung Priok Port Jakarta. This change applies to both Jakarta and Surabaya.

DB2014:

Getting Credit: Indonesia improved its credit information system through a new regulation setting up a legal framework for establishing credit bureaus.

DB2013:

Getting Electricity: Indonesia made getting electricity easier by eliminating the requirement for new customers applying for an electricity connection to show a neighbor’s electricity bill as a way to help determine their address.

DB2012:

Starting a Business: Indonesia made starting a business easier by introducing a simplified application process allowing an applicant to simultaneously obtain both a general trading license and a business registration certificate.

Getting Electricity: Indonesia made getting electricity more difficult by increasing connection fees.

DB2011:

Starting a Business: Indonesia eased business start-up by reducing the cost for company name clearance and reservation and the time required to reserve the name and approve the deed of incorporation.

Paying Taxes: Indonesia reduced its corporate income tax rate.

Trading across Borders: Indonesia reduced the time to export by launching a single-window service.

DB2010:

Starting a Business: Indonesia made starting a business easier by introducing online service, eliminating certain licenses, increasing efficiency at the registry and reducing several fees.

Registering Property: Indonesia made registering property easier by introducing time limits for procedures at the land registry.

Protecting Minority Investors: Indonesia strengthened investor protections by increasing disclosure requirements for related-party transactions.

Paying Taxes: Indonesia made paying taxes less costly for companies by reducing the top corporate income tax rate.

DB2009:

Starting a Business: Indonesia made starting a business more difficult by more than doubling the minimum capital requirement.

Getting Credit: Indonesia improved access to credit information by guaranteeing borrowers’ right to inspect their own data in the public credit registry.

DB2008:

Starting a Business: Indonesia made starting a business more difficult by increasing the paid-in minimum capital requirement.

Dealing with Construction Permits: Indonesia made dealing with construction permits easier by implementing a new building regulation that revoked earlier provisions on the time period to complete building permits—leading to a reduction in the time to obtain a building permit.

Getting Credit: Indonesia’s public credit registry eliminated the minimum threshold for loans included in its database, improving access to credit information.

Protecting Minority Investors: Indonesia strengthened investor protections by expanding the already extensive disclosure requirements for companies listed on the stock exchange.

Paying Taxes: Indonesia made paying taxes easier for companies by simplifying filing requirements and encouraging the use of electronic systems.