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KPPOD dalam Berita

Nationwide impact on stimulus yet to be seen

The government’s yearlong ef­forts to ease doing business through a number of economic stimulus packages have only been felt by two cities with no immediate nationwide impact, a local think tank says.

The Regional Autonomy Watch (KPPOD) said Monday only Jakarta and Surabaya had benefited from the second and twelfth economic policy packages, which aim to cut red tape and ease starting up a business in Southeast Asia’s largest economy. The government has issued 14 stim­ulus packages since Oct. 2015.

“The nationwide target has not been reached because the response of regional governments toward economic stimulus packages are still hindered, primarily by the fact that there needs to be a significant change in regulation and services standards for permits,” KPPOD ex­ecutive director Robert Endi Jaweng said on Monday.

KPPOD data shows that for a typi­cal business to start from the pre-ap­plication process, it takes someone in Jakarta an average 17.5 days, while in Surabaya, it takes 8.5 days and in Denpasar, it takes 25 days due to the varying number of procedures that need to be dealt with and the differ­ent fees in each city.

The national target average for a business to be up and running in all major cities in Indonesia is 10 days. In terms of fees, it takes Rp 5 million to begin a business in Jakarta on av­erage, while in Surabaya, Rp 8 mil­lion is needed.

Regional governments have the tendency to act in line with their own standards, thus highlighting a lack of proper coordination with the central government on standards for services, according to the KP­POD. There is also a lack of awareness on the package’s goals.

“’Ego-structural’ dysfunction be­tween different government sectors when it comes to economic projects in regional areas can be seen. Such as the Industry Ministry clashing with the needs of the Trade Ministry, etc.,” Robert said, adding the fact that even awareness and education campaigns tend to be carried out per sector rather than as a whole.

Robert also noted the fact that the 14 economic packages carried no “connecting threat”, saying that they functioned as separate, individ­ual policies rather than forming one cohesive economic package.

“In three to four years we might have a coordinating ‘package’ that is able to unite all economic packages into one functioning whole. But we’ll have to see about that, because without a solid, grand design plan, the packages will not work as effec­tively as they should,” he said.

Indonesian Chamber of Com­merce and Industry (Kadin) adviso­ry board member Chris Kanter said to ensure the progress of investment in the regions, there needed to be a regular supervisory mechanism so investment projects stayed high on the priority list.

“What I see is that investment projects are moving, but are moving slowly and not spread evenly across the regions due to the fact that many regional governments choose to stick to their own government meth­ods rather than being completely open to coordination,” he said.

Chris also explained that the ab­solute commitment of regional gov­ernments was needed, mainly because projects created jobs.

 

--- (Source The Jakarta Post - Tuesday December 20, 2016) ---

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