Indonesian president orders to cut investment procedure

Indonesian President Joko Widodo on Tuesday instructed ministries and state agencies to simplify procedures for investors to get permits to invest in the Southeast Asia's largest economy.

President Widodo told a cabinet meeting that ministries and officials must make breakthroughs in addressing obstacles in the process of licensing and land acquisition.

Information over the power supply and system of payment to workers must be clearly provided to investors, President Widodo said.

The president admitted that the Indonesia has to trim the number of the procedure to compete with neighboring countries in luring foreign investment.

"The procedure that has to be passed is still too many, 10 procedures. Let's compare with Singapore and Malaysia, only 3 procedures," President Widodo said.

The president also hinted to cut the number of days for starting business in Indonesia, which is 52.5 days at present.

"Compare with Singapore whose period is only 2.5 days, Malaysia 5.5 days and Thailand 27.5 days," he said at the State Palace.

"It is not true that there are no investors, no investment. But, we do not serve them better," Widodo said.

Within ASEAN, the president cited that most of the countries do not require minimum capital in the procedures except the Philippines, Cambodia and Myanmar.

President Widodo has making effort to improve investment climate by cutting red tape, combating graft and carrying out other reforms.

On Jan. 26, Indonesia launched a single window service for investment license. Endi