In the two years of President Joko Widodo's administration, 3,032 local regulations (Perda) that hampered trade and business have been cut. The Presidential Staff Office (KSP) stated that this reduction is part of a program to deregulate local regulations, responding to the economic slowdown in 2015, which weakened industrial competitiveness and consumer purchasing power.
The most frequently eliminated Perda were those related to licensing. Simplifying bureaucratic processes, which can positively impact competitiveness and economic growth, is the main objective of the deregulation.
According to a statement from the Presidential Staff Office, the deregulation program aims to improve industrial competitiveness, consumer purchasing power, investment, exports, tourism, and achieve high and sustainable economic growth.
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