August 27, 2025 | 04:21 pm
TEMPO.CO, Jakarta - Deputy Chair of the National Economic Council (DEN) Mari Elka Pangestu mentioned that the government is preparing a deregulation package to improve the climate for foreign investment in Indonesia. DEN is preparing this package with the Coordinating Ministry for the Economy to facilitate business permits and provide legal certainty for investors. "In essence, the government, especially DEN with the Coordinating Ministry for the Economy, is preparing deregulation packages that are aimed at addressing various issues, especially business licenses," said Mari at the Indonesia Summit 2025 at The Tribrata Dharmawangsa, South Jakarta, on Wednesday, August 27, 2025.
According to Mari, the complicated licensing process is the main obstacle for foreign investors. She compared Indonesia with Vietnam, which is considered more efficient in licensing matters. The government, she said, is trying to simplify the process through digital systems and integrated services (one-stop service). "Here, it's very complicated, takes how many days, and so on. There are efforts to simplify and digitize it. For example, it should be completed within 3 days; if not, it can automatically proceed to the next stage," said the former Minister of Trade.
In addition to licensing, Mari sees other obstacles arising from restrictive trade regulations, land issues, and the need for environmental impact analysis (AMDAL) permits. She affirmed the need for legal certainty so that investors feel more comfortable investing."All of these need to be simplified. Issues of legal certainty, land affairs, and AMDAL emerge as the two main things in our field evaluation," said Mari.
She added that the government will also establish a monitoring mechanism for regional regulations, similar to the weekly meetings that were used to control inflation. This way, obstacles can be addressed immediately without waiting for the completion of a large policy package. "The key is how we can monitor problems in the field and immediately resolve them. Infrastructure is still a constraint for investors," she said.
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