Problems relating to Trade and Investment on Indonesia
23. Inefficient administrative procedures, regimes and practices |
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Issue |
Issue details |
Requests |
Reference |
| (1) Plural Supervisory Institutions on the Same Business | - In the course of performing petro-gas upstream development project, in many cases, Two Approvals are required, one by SKKMIGAS (Special Task Force for Upstream Oil and Gas Business Activities) and the other by MIGAS (Upstream Oil and Gas Implementing Agency). It takes much time for acquisition of permits and approvals. | - Improvement is not easy, the problem being related to institutional issues. However, it is requested that both parties strengthen the mutual exchange of communication to expedite the decision making process. | - Law No. 22/2001 on Petroleum and Natural Gas - Presidential Decree No. 9/2013 |
| (Action) - On 9 September 2015, President Joko Widodo announced economic policy packages toward economic recovery. The 1st economic policy package includes deregulation: "from the 154-regulations, 89-duplications will be eliminated. After that 17-decrees, 11-presidential regulations, and 63-ministerial regulations will be promulgated." |
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| (2) Restricted Registration Procedures | - Change in articles of association, or transfer of the shares in Indonesia requires Indonesia Investment Coordinating Board (BKPM) approval followed by registration at Ministry of Law and Human Rights (MoLHR). While it takes minimum 2-weeks for MoLHR registration, it is not technically possible (due to the constrictions of the system administration) to accept another application for registration while one registration is pending of the same applicant. In some case, it takes a few months to complete the procedures for closure of part of the operation and transfer of the shares in parallel. | - It is requested that MoLHR improves its system administration so that it can cope with the disposal of plural registration procedures in parallel. | |
| (3) Thorough Understanding of the Guidance of the Regulations by Individuals In Charge | - Despite the change in regulations, the person in charge (at the window) is unaware of the guidance, causing confusions all the time relative to licences and approvals. | - It is requested that GOI takes step to ensure the thorough understanding of the regulations by all its personnel in concern. | - Refer to Minister of Labor and from each Country |
| (4) Nebulous and Delayed Issuance of Medical Device Distribution Licence | - Issuance procedures are nebulous for medical device distribution licence (required for each item). Depending upon items, it takes a long time for acquisition of the issued licence. It gravely interferes with the business plan of a member firm. | - It is requested that GOI takes step to dissolve contradictory legislative provisions. | - Health Minister Regulation |
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