Investment Coordinating Board (BKPM) head Thomas Lembong said that the government still had a lot of work to do to bring in investors.
“I openly admit that running a business in Indonesia is too much frustration,” he said at the Presidential Office inJakarta on Oct.17.
According to Thomas, many ministries, agencies and local governments were too caught up in permits and requirements, even though such rules were not essential.
There were 43,000 rules that frequently convolutedthe investment process and so, as a result, investors were discourged from investing within Indonesia, he said.
In expressing “frustration” over the countless number of seemingly unnecesary rules, he referred to Indonesia as no longer being a legal state, but rather one of regulations.
“Since we want to regulate everything, it has become chaotic. We should regulate only what needs to be regulated. We don’t need to regulate things when we don’t have to; do not waste time with it,” he said.
Despite the deficiencies, the investment sector also has seen progress in the past three years under Jokowi.
Investment contributions to the GDP rose from 31.7 percent to 32.6 percent, while gross fixed capital formation (PMTB) grew above the economic growth rate of 5.8 percent.
Moreover, 124 licenses, ministries and agencies have been delegated to the BKPM and through one-stop integrated services (PTSP). Furthermore, there is a three-hour investment service that assists in theBKPM’s licensing service.
*This article was previously published on kompas.com with the title “3 Tahun Jokowi-JK, Investor Masih Frustrasi untuk Berinvestasi”