Wednesday, 22 May 2019 | 06:16 WIB

Indonesia’s Ease of Doing Business Rank Drops a Notch

Indonesia's Ease of Doing Business Rank Drops a Notch (moneysmart)

JAKARTA, NNC - Indonesia's ranking in the 2019 Doing Business report released by the World Bank Group has slipped one position to become 73 out of 190 countries in terms of ease of business, or down one rank from the same report last year.

"Indonesia continues to improve the business climate and is now working to reduce the gap in global best practices related to regulating domestic small and medium enterprises," said Rodrigo A Chaves, Head of the World Bank for Indonesia and Timor-Leste in Jakarta, Thursday (11/01) .

Indonesia's ease of business ranking declined by one rank compared to the same report last year. In the 2018 Doing Business report, Indonesia was ranked 72 out of 190 countries.

Even though the ranking has dropped, the ease of doing business in Indonesia has increased from 66.54 in 2018 to 67.96 (2019).

In comparison, Malaysia is ranked 15th with ease of doing business 80.60 and Vietnam is ranked 69th with the value of ease of business 68.36.

Quoting Antara, the 2019 Doing Business Report contains annual measurements carried out by the World Bank Group in the ease of doing business between the global economy.

The report analyzes the regulations that apply to running a business in a country, including starting a business and operating, cross-border trading, paying taxes and completing bankruptcy.

The starting a business indicator in Indonesia is considered increasingly easy by combining the registration of several different social guarantees and reducing notary fees in Jakarta and Surabaya.

The time to start a business decreased by more than three days to 20 days and the cost was reduced by 6.1 percent per capita income, down from 10.9 percent.

Meanwhile, getting credit has improved with the increasing availability of information that reduces information inequality and increases credit access for small companies, reduces interest rates, increases borrower discipline, supports bank supervision and monitoring credit risk.

Property registration is made easier by reducing the time needed to resolve land disputes in the first court.