Business Reforms in Indonesia

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

DB2013:

Positive 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:

Positive 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.


Negative Getting Electricity:

Indonesia made getting electricity more difficult by increasing connection fees.


DB2011:

Positive 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.


Positive Paying Taxes:

Indonesia reduced its corporate income tax rate.


Positive Trading Across Borders:

Indonesia reduced the time to export by launching a single-window service.


DB2010:

Positive Starting a Business:

Indonesia eased incorporation and post incorporation processes for new business registration through use of on-line service, deletion of certain licenses, increasing efficiency at the registry and cutting the company deeds legalization, publication, registration and business license fees.


Positive Registering Property:

Indonesia eased the process of property registration by introducing time limits for standard operating procedures at the Land Registry.


Positive Protecting Investors:

Indonesia increased investors’ protections by increasing its disclosure requirements in cases of related-party transactions.


Positive Paying Taxes:

Indonesia reduced the burden on business by cutting its top corporate income tax rate from 30% to 28%.


DB2009:

Negative Starting a Business:

The minimum capital was increased by more than double.


Positive Getting Credit:

Borrowers have the right to inspect the data stored in the public credit registry, thanks to new regulations from the Bank of Indonesia. Borrowers can now check their credit information and contribute to improve its quality.


DB2008:

Negative Starting a Business:

Indonesia made starting a business more complex by increasing the minimum paid-in capital.


Positive Dealing with Construction Permits:

Indonesia made obtaining construction permits easier by implementing a new building regulation which specifically revoked the provisions on time period to complete building permits. As a result, the time to obtain a building permit decreased from 49 days to 21 days.


Positive Getting Credit:

The public credit registry of Indonesia lowered the minimum loan threshold was lowered from 50 million Rupiah (US$ 5,460) to zero.


Positive Protecting Investors:

Indonesia strengthened investor protections by deepening the already high disclosure requirements of the Bapepam (Stock Exchange) regulation.


Positive Paying Taxes:

Indonesia made paying taxes easier by simplifying filing requirements and encouraging the use of electronic systems.


Reform Summaries


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