INDONESIA: 12th Economic Policy Package released

Monday May 23 2016

On 28 April 2016, the Indonesian Government released their 12th Economic Policy Package. The package comprises 10 measures aimed at increasing the ease of doing business in Indonesia for SME’s, in an attempt to increase investment.

The amendments announced in the package primarily concern the reduction of the number of procedures, permits and costs required to operate a business in Indonesia.

This includes:

• reducing the number of procedures required to establish a business in Indonesia from 94 to 49 procedures, and the number of permits required from 9 to 6; and
• the adoption of the PED and PID online modules for notification of export and import goods respectively (which was previously conducted offline). A restriction of 3 days for storage of goods in seaports has also been imposed.

Foreign investors have been concerned by Indonesia`s ranking of 109th in the World Bank’s “Doing Business ranking”, when compared to regional peers such as Taiwan (11), Malaysia (18), Japan (34) and Vietnam (90), indicating a lack of competitiveness.

In this regard. Indonesian President Joko Widodo stated that he expects Indonesia to increase their ranking, to between 60 and 70 within two years.

Please click on the link above for further details on all revisions made to the current Economic Policy.