The policy package is part of the nine-point development program (Nawacita), which mandates the country to become a self-reliant and competitive nation, he said.
Through this policy package, the government will make every effort to simplify procedures, cut fees and shorten the settlement of several aspects, including the ease of starting new businesses, application for building construction permits, property registration, electricity donation, and access banking loans, he stated.
This policy package may have a more significant impact and improve the ease of doing business, he said.
All regional governments in the country will implement this policy package, he said.
Through this policy package, the government has revised all existing indicators, he stated.
Under the old regulation, anybody wishing to start a new business must pass through 13 procedures, which took them 47 days and cost them Rp6.8 to 7.8 million, he said.
The permits to start a new business undertaking include commercial permit, company registration certificate, deed of incorporation, business site permit and a nuance act.
Through this deregulation, they will only pass through seven procedures, which will take them 10 days and cost Rp2.7 million.
To start a small and medium business, they are only required to obtain a commercial permit and company registration certificate, which is to be issued altogether, as well as a deed of incorporation, he said.
As per the 2007 law on a limited liability company, the minimum capital to set up a limited liability company is Rp50 million. With the issuance of Government Regulation No. 7/2016, the authorized capital for a limited liability company remains unchanged, while the authorized capital of small and medium business in the form of a limited liability company is based on an the agreement among its founders as contained in the deed of incorporation.
Through deregulation, the government has also reduced the procedures for licensing building construction to 14 procedures for 52 days at a cost of Rp70 million from 17 procedures for 210 days at a cost of Rp86 million.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2016
