Supporting Good Regulatory Practices: Improving Public Consultation Mechanism in Indonesia

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2013/SOM1/EC/WKSP/013 Session 6 Supporting Good Regulatory Practices: Improving Public Consultation Mechanism in Indonesia Submitted by: Indonesia Macro APEC New Strategy for Structural Reform Workshop: Mid-Term Progress in Implementing ANSSR Jakarta, Indonesia 30-31 January 2013

Supporting Good Regulatory Practices: Improving Public Consultation Mechanism in Indonesia Huda Bahweres Assistant Deputy for Regional and Sub-Regional Economic Cooperation presented in APEC-Workshop : Mid-Term Progress in Implementing ANSSR Background Regulatory Reform refer to changes that improve regulatory quality; to enhance the performance, cost-effectiveness, or legal quality of regulations and related government formalities. (OECD 1997). Regulatory reform to improve investment climate is one of the priority under Indonesia s National Mid-Term Development Plan (RPJMN 2010-2014) Regulatory Reform is one of Indonesia s ANSSR Pledge which is aligned with the National Mid-Term Development Plan. APEC Leaders Statement on Strengthening Implementation of Good Regulatory Practices in 2011; i.e. (i) whole government approach; (ii) regulatory impact assessment; (iii) public consultation 1

Recent government efforts for better regulatory regime The enactment of Law No. 12/2011 concerning the Formulation of Laws and Regulations has adopted some principles of good regulatory practices, including: The establishment of mechanisms to revoke regulations in lieu of law; The introduction of mandatory academic studies (ex-ante analysis) as input into formulating bills and regulations; and The introduction of the right to provide input in the formulation of laws and regulations Findings on Public Consultation in Indonesia 1. Based on findings in the APEC-Diagnostic Study on Public Consultation in the Rule Making Process 2009 Public involvement is required but the specific forms, extent and timing of it are not stipulated. Monitoring or recordkeeping in public consultation is not mandatory. 2. Based on findings on the OECD s Regulatory Reform Review of Indonesia 2012 Ministries and sub-national governments do not maintain easily accessible records regarding the process and outcome No reports or data available on the quantity or quality of public consultation. There are no formal guidelines for consultation with affected parties in the regulatory decision making process. 2

Methodologies Phase One: November 2012 June 2013 To establish the Task Force, comprised of Government Representatives, led by the Ministry of Law and Human Rights To conduct intensive consultation with representatives of government agencies, universities and public. To engage two consultants to support the task force in preparing the draft guidelines. Phase Two: June July 2013 To conduct a two-day workshop in the margin of SOM-3 in Medan, Indonesia, June 2013. To use the 2005 APEC-OECD Integrated Checklist on Regulatory Reform section on regulatory policy and the 2004 Leaders Statement to Implement the APEC Transparency Standards as references. To finalise the Guidelines Phase Three: July December 2013 To disseminate the final guidelines to central and sub-national government agencies. Objectives The formulation of Public Consultation Guidelines will contribute to Indonesia s APEC New Strategy for Structural Reform (ANSSR) Pledge on Regulatory Reform. The Guidelines will become valuable contribution to the implementation of Law No. 12/2011 on Formulation of Laws and Regulations. The Guidelines will contribute to the improvement of good regulatory practices in Indonesia. The Guidelines will serve as a tool in conducting better regulatory reform in Indonesia. The Guidelines could be utilized a reference by other interested APEC-economies. 3

Thank you 4