Every country’s government would like to facilitate the conducting of business activities in the country. This is because the more business activities which are conducted within a certain country, the more economic growth can be generated through tax revenue, creation of employment opportunities, and increased levels of trade with other countries, among other positive outcomes. For this reason, the Indonesian government has been making attempts to ease the conducting of business activities in Indonesia.
How the Indonesian Government Has Made Conducting Business Activities in Indonesia Simpler
The government of Indonesia has taken certain measures which are intended to ease the conducting of business activities in the country. One of these measures can be seen in the fact that it now takes far less time for a business to receive an adequate power supply. It once took well over two months for a business in Indonesia to be able to receive a direct connection to the country’s power grid. However, the government made modifications in such ways that reduced this duration; today, the duration required for a business to be able to make a connection to the power grid is just 58 days.
The government of Indonesia has also eliminated many unnecessary steps and procedures which had once been required when starting a business of any sort in Indonesia. A total of 45 procedures have been eliminated; the total has now been reduced from 94 to just 49 procedures. The average time spent on each procedure has also been greatly reduced. It once took 1,566 days to complete 94 procedures, which equates to almost 17 days per procedure to be completed. Today, the 49 remaining procedures can be completed in 132 days. This means that it now takes around three days to complete each procedure. This increased level of efficiency has also reduced the cost of starting a company in Indonesia by a tremendous amount. Ever since the government of Indonesia began to institute the aforementioned policies, the amount of money spent on company incorporation processes across the country has fallen to just 78% of the amount which was usually spent before the introduction of those policies.
The Indonesian government has also facilitated the conducting of business activities in the country by easing property registration processes, the payment of taxes, international trade activities, and the enforcement of contracts.
Areas in Which the Indonesian Government Could Further Ease the Conducting of Business Activities
In spite of the positives which have just been mentioned, it is a fact that there is still much room for improvement. Illegal levies are prevalent throughout Indonesia and hinder proper conducting of business activities. These levies are usually related to freight transportation; they also drive up the cost of conducting business activities in Indonesia and thus make it more difficult to do so. The government is also yet to address a recent fall in the amount of foreign direct investment which has been entering Indonesia in recent years; no policies or regulations have been formulated to attempt to solve this problem. Several regional governments also occasionally overstep their boundaries with regard to business activities and laws. This may lead to a level of confusion and uncertainty among business owners and thus cause them to become less willing to conduct business activities in Indonesia.
Nevertheless, on the whole, there is clear evidence that the Indonesian government has taken important steps to ease the conducting of business activities in the country. This in turn makes starting a company in Indonesia a much simpler task than it otherwise would have been. For this reason, if you would like to do exactly that, we at Paul Hype Page & Co are willing to be of service to you. Our knowledgeable and competent incorporation team will ensure that you will not encounter any problems during the incorporation of your Indonesia-based company.
