Jakarta. Indonesia had to prepare for fierce competition from other ASEAN members, particularly this year with the implementation of the AEC regionally-integrated market. Vice President Jusuf Kalla stated this when inaugurating the Three-hour Permit Service at the Coordinating Investment Board (BKPM) office in Jakarta, today.
Indonesia, said the Vice President, could beat the competition as long as it improves its efficiency.
To achieve the required efficiency levels to beat the competition, Indonesia needs to solve problems surrounding logistic cost and bureaucracy.
“Government is committed to develop infrastructure (to lower the country’s logistics costs). We have increased our infrastructure budget by 50 percent this year,” he said, adding that the total budget for the development is as much as 310 trillion rupiahs (US$22.4 billion).
Mr Kalla further said that the government would also shorten the bureaucracy to make it simpler and more efficient.
Previously, BKPM chairman Franky Sibarani stated that the three-hour permit service is an effort to give ease for doing business.
“The service has shortened the licensing process from 23 days normally to only three hours through the BKPM’s one-stop service (PTSP),” he said.
The three-hour service issues permits involving principal permits, company deeds, tax identification numbers (NPWP) and land-booking letters issued by the Agrarian and Spatial Planning Ministry.
Attending the ceremony were Coordinating Minister of Economic Affairs Darmin Nasution, Industry Minister Saleh Husin, Trade Minister Thomas Lembong, Land and Spatial Planning Minister Ferry Mursyidan Baldan, Foreign Minister Retno Marsudi, and National Police Chief Badrodin Haiti.