Score of the ease with which RI goes up, why is the note lowered?

JAKARTA, KOMPAS.com – The World Bank has released a report on Doing Business 2019. As a result, Indonesia has to move from one rank to the other from 72 to 73.

However, given the partition, Indonesia has not declined. Specifically, the scores went from 66.54 to 67.96, up 1.42 points.

So why is the ease of ranking companies in Indonesia actually decreasing?

"In fact, we have made a number of improvements reformationsaid Minister of Economic Coordination Darmin Nasution in Jakarta on Thursday (11/02/2018).

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More in the World Bank report, 6 of the 10 score indicators have increased. The indicator is the startup indicator of company or Start a business (from 77.93 to 81.22), license agreements establish commercial or commercial buildings Deal with a building permit (66.08 to 66.57).

Property registration or Property Registration (59.01 to 61.67), ease of obtaining electrical connections or Get electricity (83.87 to 86.38), obtain a loan or Get credit (65 to 70) and the ease of settlement of bankruptcy proceedings or Solve the insolvency (67.61 to 67.89).

Meanwhile, the other 4 indicators pay taxes or Pay taxes (68.03), the protection of minority investors or Protecting minority investors (63.33), cross-border trade or Cross-border trade (67.27) and the performance of contracts or Contract of execution (47,23) stagnated or stayed.

Although there is no decrease in the score indicator, but on the ranking indicator, 4 indicators have decreased. These indicators are declining, particularly as regards building permits, the protection of minority investors, cross-border transactions and execution contracts.

In addition, 35 other countries studied, including China, India and Kenya, have actually made more significant reforms. This forces Indonesia to go down one rank.

"This clearly shows for us that the method of reform can no longer be simply a tinkering procedure because other people (from other countries) have much more radical reforms, others are more fundamental, "said Darmin.

Lost focus

Thomas Lembong, chairman of the Investment Coordinating Board (BKPM), acknowledged that the government's echelons were showing a lack of enthusiasm for efforts to improve the ranking of companies.

"I remember when the president echoed the issue of ease of doing business in 2014, all excited, all excited. That in 2015, 2016 was fiery, everything was focused on enthusiasm, "he said.

"Maybe I have to admit that 2017 has begun to lose focus.Our mind is not the same as that of 2014-2016," continued the former Minister of Commerce.

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In the meantime, he added, other countries have in fact started to make improving the ease of doing business a priority, such as Indonesia in 2014-2016. The corporate rating facility is considered important for enhancing investor confidence in investments in the country.

Therefore, he said, other countries are working hard to reform various areas.
However, Indonesia has lost focus and enthusiasm and has been overtaken by other countries.

Feeling

Ybadona Laoly, Minister of Law and Human Rights (Menkumham), felt that one of the weak points that had led to the decline of the ranking of Indonesian companies was the quality of the notarial resources.

Yasonna said that the notary plays a fairly important role in managing the various needs of the business. Even a notary is also one of the parties interviewed by the World Bank to rank the convenience of doing business in a country.

But Yasonna revealed that notaries do not have enough human resources.

The Ministry of Law and Human Rights has attempted to improve the quality of notaries in Indonesia through ministerial regulations (Permenkumham). But the rule was overturned by the Supreme Court (MA).

"I am confused, in fact, we are improving the quality of human beings, but the regulation has been overturned by the Supreme Court." In my opinion (the effort to increase the notary's human resources) is incomplete, "he said. he declared.

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