Joko Announces First Policy Package to Propel Economy

Jakarta Globe,  Tabita Diela, September 09, 2015

President Joko Widodo, center, on Wednesday announced the promised policy

package that he hopes will propel the economy. (Antara Photo/Yudhi Mahatma)

Jakarta. President Joko Widodo unveiled his much-awaited major deregulation policy package on Wednesday afternoon, with his administration revising 89 regulations considered to be damaging to the country's business climate.

“We’re trying to reduce duplications that could prevent industry growth,” said the President at the State Palace, while accompanied by economy-related ministers, including economic tzar Darmin Nasution, Finance Minister Bambang Brodjonegoro, Trade Minister Thomas Lembong, Energy Minister Sudirman Said and Agriculture Minister Amran Sulaiman.

Joko was also joined by central bank governor Agus Martowardojo and chairman of the Financial Services Authority (OJK) Muliaman Hadad.

Joko said his administration is simplifying the process for obtaining business permits, streamlining bureaucracy and offering more electronic-based services to reduce potential misconduct by government officers.

Today's announcement is the first of three deregulation packages Joko's cabinet pledged, with the first to be implemented before October.

The package addresses three key issues of importance to the business community.

In a bid to boost the competitiveness of Indonesia's manufacturing industry, these revisions target businesses in the finance, property, maritime, trade, agriculture and energy sectors. The review looked at 154 existing regulations pegged as being detrimental to business.

The role of regional governments will be strengthened to ease bottleneck issues for strategic projects of national interest. This includes simplifying the process for obtaining spatial planning permits, land acquisitions and goods procurement, as well as providing stronger legal certainty.

In a bid to boost investment in the property sector, the government will push the development of housing for middle-to low income buyers. Indonesia currently faces a backlog of 15 million properties and developers are struggling to meet the vastly increased demand.

“The government can’t work alone. There needs to be cooperation and support. Let’s unite to respond to the challenge of the global economic slowdown. I assure that the government isn’t only making commitments ... it is also serious in implementing these commitments,” Joko said.