Being committed to his promise to ensure the easiness for investment in the country, president through his home affair minister, cahyo kumolo has declared the annihilation of around 3000 local regulations that are considered obstacles to the business and investment.
Indonesian business association ( APINDO ) gladly welcome the decision of government for a good breakthrough in business and investment. Apindo admitted that local regulation so far have been hindrance for investment because of complicated bureaucracy and permits that have to be fulfilled by the investors. This is seen as the obstacle by Apindo likewise being affirmed by home affair minister. Thus as a new approach, Jokowi's government aims to only provide one permit for investor.
The government claimed that the eradication of local regulations are not against the law since by essence these local laws are contradicted to its prime law. Cahyo kumolo said that this is time for revolution to look forward for investment progress. There is no need for investor to prepare for unnecessary document of permitance.
According to regional economy autonomy watcher, endi jaweng, the main cause of these local regulation is the mindset of the mayors who aim only to achieve the additional income for their region neglecting the principle function to have social control and protection over environment and local business. Endi added that central government has to facilitate also the investment in region. So far there is no endeavor of central government as facilitator.
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