Govt to Drop Time-Consuming Annual License, Registration Renewal Requirements i

The government plans to drop a rule that requires businesses to renew their Trade Business License (SIUP) and Company Registration (TDP) every year to improve ease of doing business. (Antara Photo/Yudhi Mahatma)

By : Dion Bisara | on 3:04 PM February 17, 2017
Category : Business, Economy

Jakarta. The government plans to drop a rule that requires businesses to renew their Trade Business License (SIUP) and Company Registration (TDP) every year in an attempt to improve investment climate in the country, a minister said on Thursday (16/02).

Trade Minister Enggartiasto Lukita said businesses that are already in operation will be exempted from renewing their license and registration, as long as their name remains unchanged. "Next week the old obligation will no longer apply," Enggartiasto said as quoted by Kontan daily.

The procedures for renewing SIUP and TDP are different from region to region depending on local regulations, but they are all based on a 2007 trade minister regulation. Businesses have long complained about the policy, arguing that it is time consuming.

Indonesia is now ranked 91 from 190 countries in the World Bank’s 2017 ease of doing business report, up 15 places from last year.

The report pointed out Indonesia needs to further simplify its licensing procedures to reduce the time and costs for starting a business.

President Joko "Jokowi" Widodo wants Indonesia to be in the top 50 countries in terms of ease of doing business by 2019.

 

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