Government Prepares Deregulation Packages To Attract Foreign Investments

Rupiah (Photo: Antara)

JAKARTA - Deputy Chairman of the National Economic Council (DEN) Mari Elka Pangestu revealed that the government is preparing a deregulation package to improve the foreign investment climate in Indonesia.

Let's say that this deregulation package is being prepared together with the Ministry of Economy. The goal is to facilitate business licenses and provide legal certainty for investors.

"The government, especially the DEN and the Ministry of the Economy, we are compiling the term, this is like the 80s, decregulation packages that have the aim of overcoming various things, including business licenses," he said at the Indonesia Summit 2025 event, in Jakarta, Wednesday, August 27.

According to Mari, complicated licensing is the main obstacle for foreign investors to invest in Indonesia. He also compared it with Vietnam which is much more efficient in licensing matters.

Therefore, said Mari, the government needs to simplify the licensing process with digital systems and integrated services or one stop service.

Compared to Vietnam, it's very far away. Here it's very complicated, how many days and so on. There have been efforts to simplify the process through a digital system. For example, if he has to finish in 3 days, he's not finished in 3 days it can automatically continue the next one," he said.

Apart from licensing, said Mari, other obstacles arise from trade regulations that are full of restriction. This includes land issues, to analysis permits regarding environmental impacts (amdals).

For trade, especially a lot of restrictions, regulations, now all of this must be simplified. And also other issues, legal certainty, land affairs and Amdal emerged as two things that emerged in our evaluation in the field," he said.

Let's say to resolve these obstacles, his party will hold a weekly meeting with local governments, such as the Ministry of Home Affairs which will hold weekly inflation meetings.

"So we are also coordinating like an inflation meeting. We also now want to make the same one to spy on things that are an obstacle in the region. So it can be resolved immediately while waiting for larger deregulation packages," he said.

"There are more, there are many deregulations that are needed, but basically how we can monitor the problems faced in the field and can continue to solve, but also resolve the big issues," he continued.