The Chairman Of The DEN Said That The Government Plans A Deregulation To Increase National Economic Efficiency

Chairman of the National Economic Council (DEN) Luhut Binsar Pandjaitan, Minister of Finance Sri Mulyani and Coordinating Minister for the Economy Airlangga Hartarto have received directions from President Prabowo Subianto to take deregulated steps to increase national economic efficiency.

This step is expected to suppress the high Incremental Capital Output Ratio (ICOR), encourage investment, and create more jobs for the community.

Chairman of the DEN Luhut Binsar Pandjaitan emphasized that the bureaucracy should not be an obstacle for people who want to work and work so that deregulation is a top priority to improve the business climate in Indonesia.

"We have to move faster. Simplification of licensing and cutting regulations that hinder, especially for labor-intensive industries such as textiles and textile products, is the main focus. This industry has great potential in employment, but is still often constrained by complex regulations," said Luhut in his official statement, Thursday, March 20.

Luhut said that as a concrete effort, the government will simplify licensing and accelerate access to raw materials for labor-intensive industries, taking firm action against illegal imports to protect domestic industries, support modernization and production efficiency.

In addition, Luhut added and made the labor-intensive industry part of the National Strategic Program (PSN), thus gaining priority in government policies and accelerating investment.

"The government is committed to ensuring more investment-friendly regulations, providing incentives for industry players, as well as accelerating the settlement of trade agreements that could expand global market access," he continued.

As part of economic reform, Luhut said the government would launch the development of public digital infrastructure to support the digitization of government with priority on the Social Protection program on August 17, 2025.

Luhut conveyed that this digitization also encourages financial inclusion and ensures that all residents have access to wider and equitable banking services.

On the other hand, Luhut said that the Government is also targeting budget savings through the distribution of social assistance that is more targeted, minimizing budget leaks, and ensuring that assistance is received by those who really need it.

"With this implementation, a more efficient, accountable, and transparent government system is expected to provide direct benefits for the community and create a more conducive business environment," he said.