Boosting Economic Growth, Indonesia Has Cut 3,000 Regulations

Economics & Macro

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Adi Ahdiat 13/10/2023 21:34 WIB

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According to records from the PSHK and Bappenas, the government had cut 3,143 regional regulations hindering economic growth between 2015 and 2017.

Achievements of Indonesian Government Regulation Simplification (2015-2017)

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Achievements of Indonesian Government Regulation Simplification (2015-2017)

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Indonesia has a vast number of regulations, ranging from laws and government regulations to government regulations replacing laws and various other legal instruments.

Based on data compiled by *Databoks* from official government websites, as of October 13, 2023, Indonesia had approximately 382,607 regulations at various levels.

Although the number remains high, the government has been striving to simplify regulations for years.

Some achievements are recorded in the *Study on Regulatory Reform in Indonesia* (2019), a report resulting from a collaboration between the Indonesian Legal and Policy Studies Center (PSHK) and the Ministry of National Development Planning/Bappenas.

According to the report, in 2016, the government, through the Ministry of Home Affairs, revoked 3,143 regional regulations (Perda) deemed problematic.

"The revoked Perda materials revolved around regional levies and permits that hindered economic growth," stated the PSHK team in their report.

The revoked Perda also included those contradicting higher-level regulations, those conflicting with public interest and/or morality, and those hindering investment permits.

Furthermore, during the 2015-2017 period, the government deregulated 213 regulations, followed by revocation, revision, or the creation of new regulations.

Beyond the figures mentioned above, in 2018, the government also made a breakthrough through Government Regulation (PP) Number 24 of 2018 concerning Integrated Online Business Licensing Services.

"This PP streamlined business licensing procedures previously handled at the regional level, now allowing them to be conducted online," said the PSHK team.

Meanwhile, according to the Ministry of Law and Human Rights (Kemenkumham), this regulation simplification also aims to promote ease of doing business.

"Simplifying convoluted bureaucracy is a government effort and policy to make Indonesia a more business-friendly environment," stated the Kemenkumham team in a press release on their official website (November 30, 2020).

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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Boosting Economic Growth, Indonesia Has Cut 3,000 Regulations

Boosting Economic Growth, Indonesia Has Cut 3,000 Regulations

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Boosting Economic Growth, Indonesia Has Cut 3,000 Regulations

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