One Stop Shops in Indonesia

Transcription

1 One Stop Shops in Indonesia Dr. Liesbet Steer Director, Economic Programs November 2006

2 Investors challenges Burdensome licensing process Bantu aku dong!! Low quality of public services Corrupt government No accountability officials for government performance Few opportunities for Regulations public that hurt consultation No voice for small small businesses business owners

3 Develop Capacity to Support Process: Resource Centres One Stop Shops Regulatory Impact Assessment Policy Advocacy Information Generation & Dialogue Building Capacity & Pressure for Reform Improved Business Climate Improved Regulatory and Licensing Process Increased Business Participation in Policy Increased LG Responsiveness & Desire to Reform Increased Economic Activity

4 Business Licensing in Indonesia Broad Framework

5 Starting a Business Company formation and legalization Notary and National government Subdistrict Village Neighborhood Physical permits: construction, location, and nuisance permits Sectoral licenses: trading or industrial license Local governments Business registration Technical licenses: product- or activity-specific licenses National, local govts, business associations Licensing process Issuing government or other parties

6 Legal framework some facts Trading license: Time (days) Cost (Rp) Required Documentation National reg. Max ,000 6 Local reg ,000, Local government regulations: 2000: 2-3 per year 2002: 16 per year, 90% licenses and charges

7 Institutions Issuing Licenses 16% 78% OSS Center Bupati Local Gov t Agencies Others Source: KPPOD Survey (2005)

8 Business Perceptions Official fees: Between USD for main business licenses Overall official cost insignificant: Local taxes & charges only 0.5% of GDP (national) Licensing revenue in total less than 1% (17 districts) Time: DB: 97 days to register (incl. 29 days for two licenses) TAF: up to 80 days for 5 main licenses Required documents: district and sub-district Illegal charges: percent of taxes & charges

9 Use of Intermediaries 13% 6% 33% Commercials agents Individuals Local government staff Other 48% TAF, Baseline Survey, 2006

10 Business Licensing Reform: One Stop Shops

11 Licensing Process Without One Stop Econ Dept City Planning Industry & Trade Other Depts Nuisance Permit Location Permit Building Permit Industry Permit Trade Permit Bussn Registration Industry specific: e.g. tourism, food permit Licensing Process With One Stop ONE STOP SERVICE Nuisance Permit Location Permit Building Permit Industry Permit Trade Permit Bussiness Registration Industry Specifics

12 OSS Technical Assistance Strategy ASSESSMENT OSS training for Local Partner MEDIA CAMPAIGN DESIGN OF LICENSING REFORM POLITICAL COMMITMENT BUILDING IMPLEMENTATION of REFORM Policy, Regulation and Institutional Analysis Local decrees on OSS Series of meetings on Problem - Solution - Determine Strategy Trainings, Comparative Study LAUNCHING and SOCIALIZATION Brochure, Information Board INTRODUCTION to IT

13 OSS Impact : Reduction in Time (Days) Business registration Trading permit Industrial permit Nuisance/location permit Before OSS After OSS Source: TAF OSS Evaluation (2005)

14 OSS Impact : Pasuruan Case Authority Documents for key licenses % reduction in # documents Official time to process key licenses % reduction in official time Public information available Complaint mechanism IT system Before front office no no no After approval 25 48% 47 15% yes yes yes

15 Lesson Learned Political support needed from executive & legislative Full authority for OSS is hard to achieve Local government has to own the program, local partners assist Local partners need deep understanding of technical issues OSS needs to be complemented with: Broader regulatory reform at local and national level advocacy Streamlining of procedures at sub-district level

16 Thank You The Asia Foundation Jl. Adityawarman 40 Jakarta, Indonesia With Support From:

17 Average Time for Business Licenses (Days) Business registration Trading permit Industrial permit Nuisance/location permit Construction permit TAF, Baseline Survey, 2006

18 OSS Impact : Reduction in Cost (Rp 1000) Business registration Trading permit Industrial permit Nuisance/location permit Before OSS After OSS Source: TAF OSS Evaluation (2005)