Indonesia's Ease of Doing Business Index: What Needs Improvement?

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Adi Ahdiat 13/10/2023 17:52 WIB

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According to the World Bank's Ease of Doing Business index, Indonesia achieved high scores in providing industrial electricity access and business start-up procedures. However, its score was low in re

Indonesia's Ease of Doing Business Index by Indicator (2020)

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Indonesia's Ease of Doing Business Index by Indicator (2020)

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According to the World Bank, in 2020 Indonesia had an ease of doing business score of 69.6 out of 100 points.

This score placed Indonesia 6th best in Southeast Asia. Globally, Indonesia ranked 73rd out of 190 countries.

The World Bank's ease of doing business index measures the quality of regulations in each country and their impact on businesses, especially small and medium-sized domestic enterprises.

The World Bank conducts assessments based on 10 key indicators, namely:

1. Starting a business;
2. Dealing with construction permits;
3. Getting electricity;
4. Registering property;
5. Getting credit;
6. Protecting minority investors;
7. Paying taxes;
8. Trading across borders;
9. Enforcing contracts; and
10. Resolving insolvency.

The results of the assessment of these indicators are formulated into a score on a scale of 0-100. The higher the score, the better the performance of each indicator is assumed to be.

Broken down by indicator, Indonesia achieved high scores in getting electricity, starting a business, and paying taxes.

"Indonesia, particularly Surabaya, improved the reliability of its electricity supply through renovations and improved maintenance of the electricity grid," said the World Bank in its Doing Business 2020 report.

The World Bank also assessed that Indonesia has made it easier for businesses by providing online business licensing and taxation facilities.

Meanwhile, Indonesia achieved a relatively low score in enforcing contracts, namely 49.1. This figure is below the average for the East Asia and Pacific region, which scored 53.

Nevertheless, the World Bank stated that Indonesia's enforcing contracts score had improved compared to 2019.

"Indonesia has facilitated the resolution of business disputes by implementing an electronic case management system for judges," said the World Bank.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Indonesia's Ease of Doing Business Index: What Needs Improvement?

Indonesia's Ease of Doing Business Index: What Needs Improvement?

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