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Elevating Indonesia's Performance in Ease of Doing Business Index (Policy Reforms to Improve the 'Starting a Business' Indicator)

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Imelda Magdalena Freddy

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Novani Karina Saputri

Indonesian President Joko Widodo has set a target of improving the country’s ranking in The World Bank’s Ease of Doing Business (EODB) index from 72nd to 40th by 2019. One barrier to meeting this challenge is Indonesia’s ranking in the Starting a Business Indicator, where it is 144th among 190 countries. According to the EODB Report, it takes 23 days and 11 procedures to register a business in Indonesia.

To address this problem, the central government has implemented changes requiring parallel procedures with local governments and introduced a program called the Online Single Submission system (OSS), established in July 2018. However, there are major barriers to the success of these changes, including a lack of information for businesses, inadequate IT infrastructure, and failure to synchronize the central and local governments under the OSS. As a result, policy changes and the OSS have not been working as intended. Based on CIPS' findings, this policy paper recommend four policy changes.

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