Global Integrity Report

Indonesia Home

Facts

Timeline

Notebook

Integrity Scorecard

2008 Assessment

Indonesia: Integrity Indicators Scorecard

Indonesia : Integrity Scorecard Report > Sub-Category: Business Licensing and Regulation
Indicators		Score
70	Are business licenses available to all citizens?	75
71	Are there transparent business regulatory requirements for basic health, environmental, and safety standards?	100
72	Does government effectively enforce basic health, environmental, and safety standards on businesses?	50

Indicator and sub-Indicator Details

Are business licenses available to all citizens?

70a: In law, anyone may apply for a business license.

Score:

YES

Comments:

References: Law No. 40 Year 2007

70b: In law, a complaint mechanism exists if a business license request is denied.

Score:

YES

Comments: The above regulation details procedures for complaint management in Chapter VIII, article 18-19.

References: Minister of Home Affairs, Regulation No. 24, Year 2006 about Manual on Implementing One Stop Service.

70c: In practice, citizens can obtain any necessary business license (i.e. for a small import business) within a reasonable time period.

Score:

100

Comments:

References: Tempo Interaktif, Yuliawati, 13 May 2007, Business licensing becomes 30 days. [ LINK ].

Turino, Executive Secretary for Himpunan Pengusaha Muda Indonesia (HIPMI) Pusat 2000-2005, 15 September 2008, in Jakarta.

Peer Review Comments: Given the multiple layers of bureaucracy in the Indonesian government, it is difficult to realistically put a time frame for any such approval.

70d: In practice, citizens can obtain any necessary business license (i.e. for a small import business) at a reasonable cost.

Score:

100

Comments:

References: Turino, Executive Secretary for Himpunan Pengusaha Muda Indonesia (HIPMI) Pusat 2000-2005, 15 September 2008, in Jakarta.

Sinar Harapan, yud/dal/dat/fer/dio/ani, 2 April 2002, Managing Investment Licenses At The Local Level is Expensive, [ LINK ]

Are there transparent business regulatory requirements for basic health, environmental, and safety standards?

71a: In law, basic business regulatory requirements for meeting public health standards are transparent and publicly available.

Score:

YES

Comments:

References: Article 71A, Government Regulation No. 14, Year 1993

71b: In law, basic business regulatory requirements for meeting public environmental standards are transparent and publicly available.

Score:

YES

Comments:

References: Environmental Minister Decision No. 35-A, Year 1995 about evaluation of company performance.

71c: In law, basic business regulatory requirements for meeting public safety standards are transparent and publicly available.

Score:

YES

Comments:

References: Law No.1 Year 1970 about work security.

Does government effectively enforce basic health, environmental, and safety standards on businesses?

72a: In practice, business inspections by government officials to ensure public health standards are being met are carried out in a uniform and even-handed manner.

Score:

100

Comments:

References: [ LINK ]., 29 January 2005, Waste Pollution of Leather Tanning is High. [ LINK ].

Adi Purboyo, Senior Supervisor, Total Indonesia, 15 September 2008, in Jakarta.

72b: In practice, business inspections by government officials to ensure public environmental standards are being met are carried out in a uniform and even-handed manner.

Score:

100

Comments:

References: Adi Purboyo, Senior Supervisor, Total Indonesia, 15 September 2008, in Jakarta.

Kompas, Shohib et all, 15 February 1999, Bapedalda (Planning Division) Performance. [ LINK ]

Peer Review Comments: The government issues a business a certificate of environmental standard after inspection. But in many cases, a business can bribe the government to get the certificate.

72c: In practice, business inspections by government officials to ensure public safety standards are being met are carried out in a uniform and even-handed manner.

Score:

100

Comments:

References: Koran Tempo, 13 March 2008, Kalla asks work security becomes culture, [ LINK ].

Adi Purboyo, Senior Supervisor, Total Indonesia, 15 September 2008, in Jakarta.