JAKARTA. Central government asked governors to improve all investment licenses at local level. During the coordination meeting among governors throughout Indonesia on Thursday (20/10), President Joko Widodo said that investors complained the numbers of investment licenses, which amounted to 2,000 licenses with 20,000 sheets of documents.

President revealed that to date some regions still apply groundless regulations. For an example, a hotel with swimming pool should have separated license for swimming pool. Another example, a hotel entrepreneur needs to secure a specific license for restaurant if the businessman plans to open a restaurant in the hotel area.

Therefore, President asked governors to improve investment licensing in their respective regions. “If the situation continues as it is, it is useless to promote (Indonesia) as an investment friendly country,” President Joko Widodo said.

In responding to the President demand, Governor of North Sulawesi Olly Dondokambey said that North Sulawesi provincial government has started improving the investment licensing, such as in tourism sector.

Olly said that investor who wants to build hotel in North Sulawesi only needs to complete the environmental license to start the project.

Aside of improving investment license, President Joko Widodo also asked governors to eradicate extortion through the program of Clean Up Extortion (Saber Pungli). According to President Joko Widodo, the extortion will bring negative impacts to national economy. “The extortion in turn will cause high economic cost and weaken our competitiveness,” the President said.

Clean Up Extortion at regional level

Secretary Cabinet Pramono Anung said that government will establish Clean Up Extortion Team. The team will be led by Coordinating Minister for Politics, Law, and Security assisted by Head of National Police and Attorney General. During the first three months, the team will be under the vertical command of central government to regional level. However, Pramono said that the team will include head of local governments and law enforcers. (Translator: Muhammad Farid)

Editor: Sanny Cicilia