Jokowi Urges Ministers Not To Issue Rules To Fear Investors In Today's Memory, July 24, 2017

President Joko Widodo offered a prayer together when attending the Isra Miraj Commemoration of the Prophet Muhammad saw 1436 H/ 2015 M at the State Palace, Jakarta, Friday (15/5/2015). (ANTARA PHOTO/Widodo S. Jusuf/pras/aa)

JAKARTA Memories of today, seven years ago, July 24, 2017, President Joko Widodo (Jokowi) appealed to the Minister of the Working Cabinet to be careful in issuing Ministerial Regulations (Permen). He asked the minister not to issue regulations that scare investors.

Previously, Jokowi intended to increase economic growth in Indonesia. He also began to try to open himself up to investment from domestic and foreign entrepreneurs. Jokowi tries to make things easier for entrepreneurs, from permits, procedures, time, to costs.

Economic growth is clearly needed to increase the lives of the Indonesian people. Jokowi understands this very well. He has also inflamed an increase in economic growth. However, Jokowi did not necessarily close his eyes.

He saw for himself how investors withdraw and do not want to invest in Indonesia. He investigates that this condition is not far from complicated bureaucratic matters. Jokowi repeatedly appealed to smooth investment, but practices in the field are often different.

This condition cannot continue. It is possible for the Indonesian economy to run in place. Jokowi took a stand. He started announcing the government's economic policy package in 2016. He wanted his staff to immediately cut a number of permits, procedures, time, and costs for the convenience of entrepreneurs.

The original 94 procedures can be trimmed into 49 procedures. There used to be up to nine permits that could be used as just six permits. The business waiting time, which previously reached 1,566 days, could be shortened to 132 days.

Jokowi also wants to ensure that his instructions are actually carried out in the field. This desire is so that there will be no more stories of investors running away and choosing to invest outside Indonesia. Jokowi wants his government to have a strong commitment to advancing the investment climate.

"Repair measures are needed because I want the ease of business to be lowered from 109 to 40th place. If you look at the cuts, it's almost half, but in practice I want us to follow this together, especially in field implementation.

"I ask for improvement steps in the XII Economic Policy Package to really run in the field, change in real terms, don't just write it down, but in the field it doesn't match what we want," Jokowi said as quoted by the ANTARA website, May 9, 2016.

The cuts have been carried out. Likewise, other rules. New problems arise. Jokowi catches the existence of rules from the minister that scare investors. The rules are usually in the form of Permen.

Jokowi also took a stand. He appealed to ministers to really think about the impact of the Ministerial Regulation issued on July 24, 2017. He asked the minister not to issue rules that scare investors. If possible, the existing Permen must contain elements that make the business world easier.

"Communication with the community, with stakeholders is also carried out first, so do not issue a ministerial regulation (Permen) which later can hinder the business world and only increase the authority of the ministry itself,"

"Don't let the candy actually give them the fear to invest, to develop their business, to expand. Because, once again, this concerns economic growth, concerning expanding employment opportunities, all of which we must understand where they are going," said President Jokowi when delivering an introduction to the Plenary Cabinet Session, at the State Palace, Jakarta, as quoted on the Cabinet Secretariat website, July 24, 2017.